Bitcoin's 70 percent wipeout last year was the cryptocurrency's worst year on record. The tumble left scars on Bitcoin Suisse, but the firm is still enjoying fat margins.
Bitcoin Suisse describes itself as the oldest living crypto start-up in Zug. Founded in 2013 by Niklas Nikolajsen, the firm is a fixture of crypto valley and has successfully poached from the banking industry, including co-CEO Arthur Vayloyan.
Last year, Bitcoin Suisse's revenue fell 11 percent to 37.2 million Swiss francs ($37.3 million), the company said. Net profit dropped by one-third to 21.2 million – bang in line with what Nikolajsen told finews.com last autumn.
The drop is mild considering the dramatic fall in the value of bitcoin and other cryptocurrencies as well as the lower number of initial coin offerings last year. Bitcoin Suisse was ensnared in legal woes after midwifing the controversial 2017 Tezos coin offering. Both the company and Nikolajsen were last year let off the hook.
Pricey Poaching
Last year, Bitcoin Suisse bulked up on hiring, doubling staff on the year to 73 people. It expects to add another nine people to its payroll in the first quarter.
The company nevertheless maintained fat margins that the banking industry can only dream of: Bitcoin Suisse's cost-income ratio stood at 33 percent last year, despite the extensive (and presumably pricey) hiring.
Personal Wealth
Vayloyan and Nikolajsen are vying to compete with banks, which are beginning to soften their opposition to digital assets. For example, Bitcoin Suisse offers loans against crypto assets as collateral.
Bitcoin Suisse's success has boosted the wealth of Nikolajsen, a Danish programmer and passionate libertarian. Last year, he opened a Swiss family office and splashed out on an 18th century lakeside estate. He and his wife, Anne-Christine Cath Nikolajsen, plan to convert the landmark into a commune for Bitcoin Suisse co-workers and partners as well as their growing family.
