Bitcoin Suisse wants to get a banking license this year and take the company public in a subsequent step, according to information obtained by finews.com. Other crypto-firms have similar plans for getting additional financing.

Bitcoin Suisse, Seba Crypto, Sygnum and Crypto Finance Group are the four firms vying to take the lion’s share of the cryptocurrency market in Switzerland, minor as it may yet be.

Seba Crypto and Sygnum in the autumn of 2019 started out fully equipped with a banking license. Crypto Finance Group is looking to get a license as a securities trader and Bitcoin Suisse in July 2019 filed its application for a banking license with the Swiss regulator. It expects to receive the license later this year.

Stiff Competition

This means that the fight for clients and market share will gather steam this year, not least as Seba Crypto and Sygnum both started out full of energy and purpose but essentially from scratch.

In Zug, at Bitcoin Suisse headquarters, the management is looking at ease, even in face of the competitive environment it operates in. The crypto-pioneer, founded by Niklas Nikolajsen (pictured below), a citizen of Denmark, has been active for more than six years already and is profitable. In Arthur Vayloyan (pictured below) the company attracted a seasoned banker as its CEO (starting at the end of 2017). Nikolajsen remained on board as an executive chairman and is invaluable to the firm due to his network that reaches far across the global crypto community.

IPO as one Strategic Step

Nikolajsen and Vayloyan outlined their strategy for the medium term in an interview with finews.com. A development plan that will culminate in the initial public offering of their firm. «We have to think ahead over a couple of steps,» said Nikolajsen. «And one of those steps means going public.»

The two managers of Bitcoin Suisse have yet to define the exact timing of the IPO, which is mainly due to the fact that two other major strategic steps need to be taken before an eventual IPO. One is the banking license and the other a capital increase penned in for spring.

Not Enough Means to Satisfy Demand

The company aims to raise some 40 million Swiss francs ($41 million) from investors, according to Vayloyan. That way, Bitcoin Suisse would have a war chest of some 100 million francs by mid-2020. Figures from the company show that it has generated some 55 million francs in net assets so far.

The balance sheet of the company is already very solid, said Nikolajsen. «But it isn't sufficient to satisfy demand for our services.» Bitcoin Suisse has built its organization from scratch to a current manpower of some 122 over the past few years. Business in 2017 and 2018 was formidable, with a profit of 57 million francs for the two-year period.

Break Even in 2019

Nikolajsen and Vayloyan used the means to expand the firm substantially. Their investment strategy and the sustained bear market for crypto-services will combine to leave the company with a result around break even for 2019.

The two managers of Bitcoin Suisse aim to be ready for a coming crypto boom, with a balance sheet that will enable the company to substantially grow its business.

Expansion All Round

The new capital is necessary to satisfy demands from the regulator on how much a company needs to hold as back up for its business. Expanding the activities, be it by adding lending services, trading or further products will require even more capital, which is why Bitcoin Suisse is ultimately aiming to go public.

In all, four Swiss crypto finance firms are now looking to fill their coffers this year. Jan Brzezek, CEO and founder of Crypto Finance, confirmed that he was looking to raise money to satisfy the capital requirements for a securities trading license. Seba Crypto has already announced that it is seeking to raise a further 100 million francs from investors in the first half of the year.

The Fight for Risk Capital

Sygnum as well is planning to raise capital during 2020, says Co-CEO Mathias Imbach without any further details.

Based on the companies’ announcements and estimates, the four crypto-players need a total of about 250 million francs from investors. Time will tell whether enough risk capital is available for all the four players.