The challenging year for the crypto markets left its mark on the Crypto Valley, as revealed by the previous year's financial figures of Zug-based crypto bank Bitcoin Suisse. Some changes in the board of directors and a shift in business focus are expected to favor a revival of the pioneer.
Bitcoin Suisse reported an operational revenue of 37 million Swiss francs in 2022, compared to an exceptionally strong year of 84 million in 2021. According to CEO Dirk Klee, the company incurred an adjusted operating loss of 24 million CHF in the previous year. This was primarily due to lower revenues from crypto trading, partly attributed to the weak volumes of the past year, as well as a loss of 23 million CHF from proprietary inventory in the form of cryptocurrencies. The company's financials were leaked yesterday through Inside Paradeplatz.
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Expansion of banking activities
In light of the high volatility in the crypto markets, the decade-old company aims to focus more on recurring revenues. Currently, the majority of Bitcoin Suisse's revenue comes from its trading platform. By placing a greater emphasis on traditional banking services such as crypto asset management and investment advisory, the company intends to reduce its dependence on market turbulence. Furthermore, Bitcoin Suisse has plans to expand into key regions including the EU, the UK, and the United Arab Emirates.
However, obtaining a Swiss banking license remains a prerequisite for some of these activities. Bitcoin Suisse initially submitted an application to FINMA, the Swiss Financial Market Supervisory Authority, in July 2019. Unlike its competitors Sygnum and SEBA, Bitcoin Suisse's application did not receive approval. As reported by CVJ.CH, the company withdrew its first application in March 2021. CEO Klee mentioned that Bitcoin Suisse has been preparing for a second attempt, but no specific date has been announced yet.
Strategic changes in the Board of Directors
The nomination of two new board members is supposed to further support the restructuring efforts of Bitcoin Suisse. At the upcoming general meeting in late June, the crypto pioneer will propose former German top politician Philipp Rösler and banker Marco Menotti as new board members. Entrepreneur and Bitcoin Suisse investor Roger Studer on the other hand will not seek re-election to the board after his three-year term. Alongside a workforce reduction of approximately 25% to 220 full-time positions, Bitcoin Suisse aims to be well-prepared for a potential reversal in the crypto markets, as stated by CEO Dirk Klee.
"It is notable that in recent months, Bitcoin has exhibited significantly less volatility compared to the stock or bond markets. I believe that the market can stabilize at its current level and then rise again." - Bitcoin Suisse CEO Dirk Klee
