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Bitfire stablecoin push deepens despite 19x loss widening
Bitfire posts HK$245 million loss driven by HK$152 million crypto write-down, but CEO Livio Weng pushes stablecoin integration as HKMA restricts issuer licences to HSBC and Standard Chartered.
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Bitfire is accelerating its stablecoin integration strategy even as the Hong Kong virtual asset manager posts a half-year loss that ballooned 19-fold to HK$245 million ($31.28 million). The company attributed the widening hole primarily to a HK$152 million write-down on held crypto assets, with rising expenses for professional services, customer capabilities and R&D adding to the shortfall.
The loss for the six months through March 2026 compares with HK$12.3 million in the same period a year earlier. The profit warning, issued on May 21, landed just weeks after Hong Kong’s Monetary Authority awarded its first batch of stablecoin issuer licences to HSBC and Standard Chartered Bank only.
HK$245 Million Loss: 19x Hole from Crypto Asset Write-Downs
Breakdown of the Loss: HK$152 Million Crypto Write-Down
The fair-value decline on crypto holdings accounted for 62% of the total loss. Bitfire holds a mix of digital assets on its balance sheet, with exposure concentrated in Bitcoin and Ether. The mark-to-market hit reflects the prolonged bearish pressure on crypto prices during the six-month period.
Expense Splurge: Professional Services and R&D
Bitfire boosted spending on professional services, customer capabilities and research and development. The combined outlay for these categories rose significantly versus the prior-year period. Management framed the increase as an investment in infrastructure to serve institutional clients, not a sign of operational strain.
Stablecoin Integration Push Despite Licensing Bottleneck
HKMA's April 2026 Licences: HSBC and Standard Chartered Only
Hong Kong’s HKMA restricted the first stablecoin issuer licenses to two traditional banks. No pure-play crypto firm qualified. That creates a compliance bottleneck for the market – but also positions Bitfire as a natural integration partner for compliant stablecoins rather than a direct issuer.
Bitfire's Integration Role as Licensed Asset Manager
Bitfire holds SFC Types 1, 4 and 9 licences plus a Trust and Company Service Provider (TCSP) licence. That regulatory stack lets it manage client assets, advise on securities, and custody digital assets under Hong Kong’s framework. CEO Livio Weng described stablecoins as a “core pillar” of Hong Kong’s Web3 ecosystem and said the firm will “prioritise integrating compliant Hong Kong stablecoins into its clearing and settlement systems.”