Blog
Shareholders Letter 2023
Dear Bitkub shareholders,
As we reflect on 2023, the global economy presented a mixed picture. While it proved more resilient than initially anticipated, growth remained subdued under the weight of factors like tighter monetary policy, ongoing supply chain disruptions, and the lingering impact of the war. Inflation was a key concern, reaching elevated levels before gradually easing throughout the year. Despite these challenges, there were areas of strength, particularly in Asia, and the overall outlook for 2024 continues to focus on navigating uncertainty and adapting to a new economic landscape.
The aftermath of the 2022 black swan, from the fall of Luna to the bankruptcy of FTX exchange, had consequences for everyone involved in the cryptocurrency space. Although it was the result of irresponsible actors, it penalised and had impacts for all of the remaining good actors. Thai digital asset exchanges suffered a 79% drop in trading volume last year amid tighter macroeconomic conditions and scandals that eroded trust in the industry. After one year, the dust has settled. We witnessed a rebound in trade volume in the fourth quarter of 2023, and trade volume in December 2023 has doubled that of December 2022. In a year marked by economic uncertainty, our group not only weathered the storm but emerged stronger, driven by a challenging commitment to innovation, trust, and responsible growth.
Before we reflect on our remarkable achievements in 2023, I would like to address two unfounded rumors that we have faced throughout the year. I understand the power of information, and it is our priority to maintain transparent communication with our valued customers and shareholders. The first allegation — that our Bitkub exchange might be involved in illicit financial activity — is completely false. We operate with the highest standard of compliance and adhere strictly to all Anti-Money Laundering (AML) regulations. Our commitment to compliance and ethical business practices is unwavering. The second rumor — that we laid off half of our workforce — is also inaccurate. While we have undergone restructuring to optimize our operations, the actual percentage of workforce reduction is only 5.47% across our group, which is within normal industry standards during such difficulty market conditions. I understand that rumors can be unsettling, but I believe in transparency and open communication with all our stakeholders.
To support our ambitious technological advancements, we successfully secured funds through a strategic share purchase agreement. Asphere Innovation (AS) is a renowned technology-oriented company specialised in a variety of industries, including information technology, gaming, media, and marketing. The acquisition of ordinary shares of Bitkub Online is valued at 600 million baht and accounts for 9.22% of the registered capital. This infusion of capital not only bolstered our financial runway but also validated our vision and secured invaluable access to resources and expertise. This partnership empowers us to accelerate our ambitious growth plans and realize our full potential as a game-changer in the fintech landscape, allowing Bitkub to expand into the Southeast Asian market in the years to come.
We expanded our operational footprint by establishing a new zone in our office, providing the necessary infrastructure to accommodate our growing team for the upcoming bull market. Our recently established office reflects our commitment to providing a thriving environment for our talented team, allowing them to collaborate seamlessly and push the boundaries of what’s possible. This vibrant space is a testament to our dedication to nurturing creativity and building a future-proof foundation for our company’s success.
2023: Building Blocks of Success
Bitkub Exchange:
Our Bitkub licensed digital assets exchange has achieved recognition for its unparalleled security and ISO certification. We kept our customers’ assets safe with the utmost integrity. Early this year, we obtained ISO/IEC 27701:2019, a worldwide recognised standard for Privacy Information Management. This certification sets a new industry standard, and underscores our unwavering commitment to customer protection and compliance.
Bitkub Blockchain Technology:
We boldly transitioned our own Bitkub blockchain network to a Proof-of-Stake (PoS) consensus mechanism, ushering in an era of increased trust, scalability, energy efficiency, and environmental sustainability. This move reaffirms our unwavering commitment to responsible innovation and building a truly future-proof infrastructure. For more information about projects in the Bitkub chain ecosystem, please refer to the newest version of Bitkub chain white paper.
KUB coin has been listed on well-known exchanges around the world, such as Coinstore and Bybit. This milestone makes Bitkub Chain even more international as it initiates a significant shift to using the Bitkub Chain to support users worldwide. From now on, it’s a new beginning to raise knowledge of the global market and draw users from everywhere.
Bitkub Blockchain Technology has been awarded the prestigious ISO/IEC 27001 certification for data security management by the British Standards Institution (BSI). This certification fosters the ability to reduce the danger of data theft while also boosting confidence among stakeholders and service consumers.
We spearheaded the integration of finance and the burgeoning metaverse, forging partnerships with The Tourism Authority of Thailand, Plan B Media, ABX, and Six Network to create immersive financial experiences. This groundbreaking move positions us at the forefront of this digital frontier in Thailand.
Bitkub Academy:
In order to create practical blockchain solutions, Bitkub Academy partnered with Near Protocol, Proximity, and other related organizations to host the Bitkub BLOCKATHON 2023.
The first BizPitch: Business Pitching Competition was organized in collaboration between Bitkub Academy and EMURGO Cardano to provide students with an open platform to showcase their business model ideas, gain knowledge about blockchain technology and digital assets, prepare expert presentations, and put the new abilities they acquired into practice.
Bitkub AI:
As part of the company’s plan to grow the business to the research and development of artificial intelligence (AI) technology, we partnered with the innovative ThaiGPT and created a thriving Bitkub AI via Bitkub Moonshot as our software house. The World Economic Forum projects that by 2027, technology would disrupt 44% of human skill sets, meaning that individuals will need to reskill and upskill internationally. These paradigm changes, which are brought about by the revolutionary effects of the Fourth Industrial Technology and Digital Green Revolutions, have a big influence on the direction of IT infrastructure. This partnership puts us in a leadership position as we shape the future of technological solutions, encourage creativity, and advance product development.
Strategic Alliances:
Through our collaboration with esteemed organizations, we solidified our reputation as a reliable partner. These collaborations promote financial inclusion, quicken the pace of digital change, and open up new opportunities in a variety of industries.
-The Tourism Authority of Thailand (TAT) plans to open its first virtual office in the Bitkub Metaverse in the third quarter of this year, in a bid to attract millennials and foreign tourists to bolster Thailand’s digital economy.
-Bitkub, Coins.ph, Indodax, and Coinhako, the four leading exchanges in Southeast Asia, have founded The Digital Asset Exchange Alliance. we aim to form an organization that will bring together several digital asset exchanges in our region. The association’s initial goal is to promote a strong and fair regulatory environment, as well as the exchange of knowledge and best practices. It could be a non-profit organization.
-Together with Tether, a leader in cutting-edge blockchain technology, Bitkub Exchange and Bitkub Academy form a partnership. We have formally launched their collaboration, which aims to spread knowledge and facilitate access to blockchain technology.
-We officially announced collaboration with National Digital ID Company Limited (NDID) to integrate a digital identity verification system into the company’s Know Your Customer (KYC) process for digital asset account.
-Bitkub World Tech, in collaboration with the Eastern Economic Corridor Office of Thailand (EECO), signed a memorandum of understanding (MOU) to drive digital technology adoption in the Eastern Economic Corridor, boosting competitiveness and contributing to Thailand’s economic growth.
Venturing for Growth:
Recognizing the potential of promising Thai SMEs and startups, we actively invested in the future of digital economy through our venture capital arm. This strategic diversification fuels the ecosystem’s growth and expands our portfolio with high-potential ventures.
-Bitkub Ventures and Jaothui, the Thai buffalo industry, has signed a memorandum of understanding (MOU) to elevating the Thai buffalo industry with the introduction of blockchain technology.
Bitkub and JaoThui Memorandum of Understanding
Recognition and Reward:
Our dedication to excellence resonated throughout the industry, garnering prestigious awards and recognitions. These accolades serve as a testament to our unwavering commitment to delivering value and shaping the future of finance.
-Bitkub Exchange earned two awards at the renowned “TCCTA Contact Center Awards 2023,” held by the Thai Call Center Trade Association: “The Best Social Media Contact Center” and “The Best Contact Center 2023” in the Outstanding Manager (Tele-service) category.
-Bitkub Group has been honoured with the Global Tech Innovation Award at Huawei Connect 2023 in Shanghai, marking a significant achievement in the world of technology innovation.
-Bitkub group receive the “Top Most Attractive Companies in 2024” award in QGEN survey. Bitkub Capital Group ranked 5th among companies most desired by individuals aged 20–40, according to a survey conducted at the end of 2023. It was the 3rd most attractive Thai company following SCG and PTT.
-We earned top company awards in WorkVenture’s Top 50 companies in Thailand for three consecutive years.
Profitability Through the Storm:
In a testament to our robust business model and unwavering focus on value creation, we achieved profitability even as the broader market faced headwinds. This accomplishment underscores our agility and resilience in navigating challenging economic landscapes. We are actively preparing for the inevitable market rebound, strategically positioning ourselves to leverage the next wave of growth. This includes optimizing operations, refining our product offerings, and building a robust pipeline of strategic partnerships and acquisitions. Our purpose-driven initiatives mission is what holds us strong, which also helps us resonate with our customers. We strive to democratise opportunities for everyone via leading innovations.
Charting the Future: Embracing the Horizon
Rebuilding Trust at WEF 2024:
I had the opportunity to attend the Annual World Economic Forum Meetings in 2022–2024 in Davos, which was an eye-opening experience for me. To be recognised and invited back as panelists for three consecutive years is a testament to the value we bring to these discussions and the impact we have made within our global digital industry.
We actively participate in the World Economic Forum under the crucial theme of “Rebuilding Trust.” This engagement reaffirms our commitment to ethical and responsible innovation, fostering collaboration and shaping a future-proof financial system built on trust and transparency. In the coming years, technology will play an increasingly important role in the world, touching every industry and altering the way we work. However, technological advancements cannot come at the expense of the environment. To transform innovation in the new era, we must develop technology with sustainability in mind to create the Digital and Green Revolution.
The opportunity to engage in meaningful discussions, exchange ideas, and learn from other brilliant participants has been enlightening and motivating. I had the opportunity to speak at the WEF 2024 discussion on the topic of “Clear-Eyed about Crypto” in Davos, Switzerland, in January 2024, alongside international experts such as Paul Mo-po Chan — Financial Secretary of The Government of the Hong Kong Special Administrative Region (HKSAR), Michael Sonnenshein — CEO of Grayscale Investments, Inga Mullins — CEO of Fluency Group, Brendan Vaughan — Editor-in-Chief of Fast Company, Brad Garlinghouse — CEO of Ripple. During the panel discussion, we talked about what defines reasonable regulation and how regulators may protect consumers while still fostering innovation. The demand for trading digital assets will increase even more with the approval of the Spot Bitcoin ETF. It is imperative for policy makers and regulators to consider that their actions should not lead to the reduction or limitation of this competition. Digital asset regulation cannot be a one-size-fits-all approach. It is essential to take into account the context in each market.
Sustainability as Our Compass:
Over the years, we have experienced remarkable growth and achieved several milestones. Our success has been fueled by our relentless pursuit of expansion, innovation, and delivering value to our customers. However, in light of evolving global challenges and the inevitably needs to address sustainability concerns. Therefore, in 2024, we will shift our focus from growth to sustainability, employing “ESG” business models of Environment, Social, and Governance, with a focus on Social and Governance. Integrating sustainability and the UN Sustainable Development Goals (SDGs) into our core operations is fundamental to our future. This commitment will guide our investment decisions, product development, and partnerships, ensuring we leave a positive impact on the world.
Preparing for IPO:
We are actively preparing for IPO filings, paving the way for further growth and access to capital. This exciting step will allow us to scale our impact, unlock even greater value for our shareholders, and further solidify our position as a global leader in fintech. We are considering listing our company first in Thailand, as we aim to become a pioneering Thai-nationality tech company. This strategic move aligns with our commitment to democratised Thailand’s value to everyone.
However, we are also exploring the opportunity of listing in Hong Kong. We believe that Hong Kong’s robust framework and regulatory environment make it an ideal hub for fund flow in Eastern world. Listing in Hong Kong would not only provide us with access to a broader investor but also enhance our global visibility and credibility in the technology sectors. We are committed to expanding our reach beyond Thailand, venturing into new markets with our innovative solutions. This strategic expansion will solidify our position as a global force in shaping the future of finance.
Innovation and sustainable growth
Fast growth will no longer be our top priority in 2024. We must trade some efficiency and efficacy and be larger and more bulky, but in exchange, we receive an internal check and balance. Decentralized decision-making and effective governance will come from this. We have to concentrate on risk management since it will ultimately lead to sustainability.
The global digital economy is growing rapidly and it will eventually account for more than half of global GDP. Bitkub is committed to being at the forefront of this digital revolution. We are on a journey with blockchain to digitise and nurture truly borderless and global transactions, whether for currencies, assets, or anything of value. I promise you that Bitkub will continue to bring opportunities to everyone with leading technology. Your trust in us means the world for us and your support is always appreciated. Together, we will continue to navigate the exciting journey ahead, driving innovation, and creating sustainable growth.
We are immensely grateful for your continued support and confidence in our journey. 2024 promises to be a year of unprecedented growth and opportunity, and we are excited to embark on this journey together.
Sincerely,
Topp Jirayut Srupsrisopa
Founder and Group CEO of Bitkub