Bitcoin Suisse saw profits plunge in 2022, making it all the more urgent for the crypto start-up to restructure its business model. At the same time, it is bringing on prominent people to its board of directors as it sets the path to become an institution as finews.com found out.
Bitcoin Suisse’s operating income fell to 37 million Swiss francs from 84 million Swiss francs in 2022 from the previous year, its CEO Dirk Klee, said in an interview with finews.com, adding that trading collapsed in the face of various scandals in the crypto industry.
The results, leaked to «Inside Paradeplatz,» ahead of the company’s annual general meeting at the end of the month, represent a «complete reversal» from 2021, which was a bumper year. The drop in profit-making was partially due to large individual customers selling mass amounts of tokens and coins, Klee said, while adding that overall, the company had attracted net new money.
Impairment Losses
The market correction also impacted Bitcoin Suisse own holdings, deposited across trading centers worldwide, which fell by around 23 million Swiss francs. «Proprietary trading» category is not proprietary trading in the conventional sense, but rather corresponds to current assets used for operational business, Klee said.
(Image: Bitcoin Suisse)
Although the setback was also due to the large drops in the value of altcoins (alternative digital assets), Bitcoin Suisse will continue to maintain these holdings, Klee said. Admitting these were not «pretty numbers,» for Klee they show the volatility in crypto brokerage.
Furthermore, the company can stomach the results which were expected due to the market situation. Bitcoin Suisse continues to be solidly financed and «very well prepared» for a possible upturn in the crypto industry, he added.
Job Cuts
Bitcoin Suisse has had to cut one in four jobs at the company since the end of 2021. Overall, the headcount has fallen from over 300 to around 220 full-time positions during this period. A major round of layoffs took place last January, but Klee says that some of the measures were cushioned by natural employee turnover.
The recent market turmoil that followed the lawsuits filed by the US Securities and Exchange Commission against leading crypto exchanges Binance and Coinbase has even led to many inquiries from customers, Klee said. «We expect that the turmoil could prove positive for solid and Swiss-based providers like us,» he added.
New Members
Philipp Roesler, (pictured below) the former leader of the German Free Democratic Party (FDP), who also served as a finance minister and vice chancellor under Angela Merkel, is joining Bitcoin Suisse’s board of directors according to Klee.
(image: Brainloop)
The crypto company is hoping to gain from Roesler's international network. The 50-year-old former politician, who lives in Zurich, has a strong affinity for crypto and is active in Switzerland’s crypto scene, Klee said.
Marco Menotti, worked for 15 years at UBS, before moving to the Swiss stock exchange SIX’s executive board in 2018. He left SIX in mid-2022 to pursue various mandates at smaller companies.
(Image: Helveteq)
Roger Studer
Both Roesler and Menotti will stand for election at the annual general meeting on June 29. The Zug-based crypto broker has undoubtedly scored a coup with Roesler's candidacy on Bitcoin Suisse’s board. However, Roesler’s candidacy is not about gathering celebrities on the board of directors - but about helping the crypto startup on its way to becoming an institution, Klee said.
Furthermore, Roger Studer (pictured above) is leaving the board after a three-year term to concentrate on various other mandates. Studer headed investment banking at Zurich-based Vontobel and led a financing round for Bitcoin Suisse as an investor in 2020, before becoming an entrepreneur.
Steady Earnings
Bitcoin Suisse is currently preparing to apply for a Swiss banking license after withdrawing its previous application in 2021. Part of these preparations include the commissioning of a crypto-compatible core banking system and strengthening of governance and compliance, Klee told finews.com
Bitcoin Suisse, which has had a strong trading focus, is aiming to position itself as an asset manager going forward. A shift that could also result in more steady earnings.
Staking, a service whereby the entity - in this case, Bitcoin Suisse - holds tokens and coins to validate blockchain transactions and gives customers token rewards in return, is also in focus.
The Zug-based company says it is already among the five largest providers worldwide of staking services.
