After a challenging year in 2022, Bitpanda is making a significant comeback, driven by strategic cost-cutting and a recovering crypto market. Bitpanda faced a severe downturn in 2022. The company’s turnover plummeted from €500 million to €90 million, resulting in a loss of €116 million. This decline was attributed to an overburdened cost structure and the crypto winter. For 2023, the company reported a pre-tax profit of €13.6 million.
2023 Financial Recovery
In a remarkable turnaround, Bitpanda reported net revenue of €147.6 million and a pre-tax profit of €13.6 million for the 2023 financial year. Additionally, the fintech posted over €100 million in revenue for the first quarter of 2024. CEO Eric Demuth highlighted these positive results, signaling Bitpanda‘s return to profitability.
Strategic Cost-Cutting
Bitpanda‘s recovery can be largely attributed to rigorous cost-cutting measures. The company reduced its workforce from over 1,000 to approximately 730 employees. “We have radically cut costs, which also included job cuts,” Demuth stated. This move addressed the inefficiencies that plagued the company during the hype period when it over-expanded.
Expansion and Partnerships
Beyond cost-cutting, Bitpanda expanded its infrastructure offerings with “Bitpanda Technology Solutions,” providing white-label solutions to other brokers. The fintech has established partnerships with N26, LBBW, and Raiffeisen. Additionally, Bitpanda received a BaFin license in 2022, enhancing its capability to store and trade crypto assets.
Market Recovery and User Growth
Bitpanda‘s fortunes have been bolstered by a surging crypto market. Bitcoin soared to over $60,000, with other cryptocurrencies also hitting record highs. This market resurgence has positively impacted Bitpanda’s trading fees and user engagement. In August last year, Bitpanda surpassed the one million user mark in Germany. The platform now boasts 4.5 million customers globally.
