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Industry

HashKey Earned $43.7M in H1, With Adjusted Loss Still at $40.2M

Institutional customers now account for 82% of platform volume, and on-chain RWA value locked rose 167.8% to $341.6 million.

Written By Dhara Chavda
Edited by Divya Mistry
Published 51 minutes ago·Updated 30 minutes ago
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Smartphone displaying the HashKey Group logo against a blurred HashKey background
AI Summary
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HashKey Holdings reported 20.6% revenue growth, while its adjusted loss fell 21% to HK$314.8 million.
Employee incentive plan drove share‑based payments to HK$290.6 million, inflating expenses and boosting total remuneration to HK$492.4 million.
Institutional traders supplied 82% of $36 billion platform volume, propelling transaction‑facilitation revenue 38.6% higher.

HashKey Holdings reported first-half revenue of HK$342.5 million ($43.7 million), up 20.6% year-on-year, with adjusted loss narrowing 21.0% to HK$314.8 million ($40.2 million)—a figure equal to roughly 92% of the revenue it earned over the same period.

The unaudited results cover the six months to June 30 and are the first interim figures since the company listed on the Hong Kong Stock Exchange on December 17, 2025. Dollar figures throughout are converted at HK$7.84 to the US dollar, the rate on August 27; the Hong Kong dollar is pegged within a 7.75 to 7.85 band.

What the Adjusted Figure Excludes

Adjusted loss is a non-IFRS measure. HashKey defines it as loss for the period with three items added back: equity-settled share-based payment expenses, interest expenses on preferred shares converted to equity at listing, and net fair value losses on and write-downs of digital assets.

The company said the third adjustment is made because price volatility could significantly affect the underlying performance of its core businesses.

The press release does not state the statutory loss under IFRS. The interim results announcement filed with the exchange does: the loss for the period was HK$695.2 million ($88.7 million), widening 37.2% from HK$506.7 million ($64.6 million) a year earlier. The two headline figures point in opposite directions.

On the adjusted basis, the trajectory is improving. Adjusted loss fell from $50.8 million a year earlier, and as a proportion of revenue it dropped from about 140% to about 92%.

What Separates the Two Numbers

The reconciliation table in the filing sets out the gap. To reach adjusted loss, HashKey adds back equity-settled share-based payment expenses of HK$290.6 million ($37.1 million) and net fair value loss and write-down of digital assets of HK$89.8 million ($11.5 million).

The share-based payment line is decisive. A year earlier it was HK$2.6 million. It has risen almost 112-fold and flows through every expense category—general and administrative expenses alone rose HK$172.9 million, of which HK$167.3 million was staff costs the company attributes to its employee incentive plan. Total employee remuneration reached HK$492.4 million ($62.8 million) against HK$224.4 million ($28.6 million), for a headcount that grew from 335 to 343.

The comparison is not symmetrical. The prior period carried HK$52.2 million in interest expense on preferred shares, added back then, which does not recur after conversion to equity at listing. Finance costs fell from HK$88.0 million to HK$5.4 million as a result.

Margin Moved Two Ways

HashKey said gross profit margin improved sequentially to 60.6% from 51.0% in the second half of 2025.

Measured year-on-year, it declined. Gross margin was 60.6%, down from 65.0% in the first half of 2025. Cost of revenue rose 35.7% against 20.6% revenue growth. HashKey attributes the decline to transaction facilitation, its lowest-margin segment at 50.1%, taking a larger share of total revenue, rising to 78.2% from 68.0%.

Both comparisons are accurate. The release presents the sequential one.

The Institutional Shift

Transaction facilitation remains the core business, with revenue up 38.6% to $34.2 million, growing faster than the group overall. Platform trading volume reached $36.0 billion, up 31.8%. Within that, institutional volume rose 58.8% to $29.5 billion and now accounts for 82.0% of the total.

Institutional volume growing at nearly twice the platform rate means the non-institutional share is contracting in relative terms. HashKey attributes the shift to institutional confidence in a compliant platform.

The composition of that revenue changed more than the total. Commission fee income, the segment’s largest line, fell 18.5% to HK$88.0 million ($11.2 million) from HK$108.0 million ($13.8 million). Growth came from elsewhere: revenue from trading of digital assets rose to HK$79.1 million ($10.1 million) from HK$21.3 million ($2.7 million), and interest income to HK$55.5 million ($7.1 million) from HK$15.9 million ($2.0 million). Commission income falling while volume rose reflects what the company describes as an optimised fee structure.

Tokenization and Asset Management

On-chain real-world asset total value locked reached $341.6 million, up 167.8%. HashKey said it delivered Hong Kong’s first real estate RWA project and first regulated silver RWA token during the period.

On-chain services revenue fell 32.4% to HK$35.8 million ($4.6 million) from HK$53.0 million ($6.8 million), a decline the press release did not mention. HashKey attributes it to falling proof-of-stake token prices and reduced reward rates, with average assets under staking dropping to HK$14.8 billion ($1.9 billion) from HK$20.2 billion ($2.6 billion). Exiting low-return staking projects lifted the segment’s gross margin to 96.5% from 94.3%.

That business line has expanded steadily through the year. HashKey launched a one-stop RWA issuance solution in February covering structuring, custody, and both primary subscription and secondary trading, and listed HSK, its ecosystem token, on the exchange the following day. This month it became an authorized distributor for HKDAP, the Hong Kong dollar stablecoin issued by Anchorpoint Financial, and on August 25 it listed Franklin Templeton’s grBENJI tokenized government money market fund for professional investors in Asia.

Asset management recorded $757.8 million in assets under management, generating segment revenue of $4.95 million—a yield of about 0.65% on assets. HashKey said it launched stablecoin and bitcoin wealth management products and what it describes as the industry’s first bitcoin hashrate fund.

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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