How Does Bitcoin Suisse Continue to Grow?
Despite the so-called “crypto winter” Crypto Valley fixture Bitcoin Suisse reported strong numbers with a revenue of 37.2 million CHF
The company continues to expand with a headcount of over 70 and growing
Bitcoin Suisse, despite being entangled with the Tezos debacle, has solidified its first-mover advantage, strongly branding and promoting its 5+ years of experience in the the industry
Switzerland’s tradition of discreetness and slow, but steady growth fit well with the image that Bitcoin Suisse has cultivated - avoiding over-promotion, but delivering solid services on a consistent basis.
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 woesafter midwifing the controversial 2017 Tezos coin offering. Both the company and Nikolajsen were last year let off the hook.
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.
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.
This article originally appeared on Finews.