Shareholders Letter 2020–2023

Shareholders Letter 2020

Dear Bitkub shareholders,

2020 presented a unique set of challenges for businesses globally, yet Bitkub not only persevered but thrived. While the COVID-19 pandemic forced rapid adaptation and innovation across industries, Bitkub seized a unique opportunity to emerge as a leader in the Thai digital asset landscape. Even as the OECD projected a significant decrease in global GDP followed by a recovery to pre-crisis levels by the end of 2021, Bitkub demonstrated an unwavering commitment to growth and innovation. Notably, following the closure of BX.in.th’s in the preceding year, Bitkub has risen to become the leading officially licensed exchange in Thailand.

The go-to platform for digital assets in Thailand: ‘Think of Bitcoin, Think of Bitkub’

While the COVID-19 pandemic sent shockwaves through businesses across the country, we saw a unique opportunity. As businesses hunkered down and slashed budgets, we made a bold move: becoming one of a few major spenders in the OOH (Out-Of-Home media) landscape. With many competitors cutting back, we became the most attractive client for ad agencies. This leverage allowed us to negotiate prime placements and secure the best rates for billboards, LEDs, and other high-impact formats. Being the only major advertiser meant that we didn’t need to compete with other businesses; “we essentially had the entire physical ad space to ourselves”.

The hard-to-miss advertisements in every corner of Bangkok resulted in a blanket effect, ensuring that our message reached a large audience across the country. To maximise the impact, we developed a catchy slogan: ‘Think of Bitcoin, Think of Bitkub’. The goal of the billboard is to spark people’s confidence that they can now invest in Bitcoin using Bitkub. It’s convenient, quick, and safe. This simple yet effective message resonated with viewers and solidified our position as the go-to platform for digital assets in Thailand. The results spoke for themselves. During this period, we witnessed a significant increase in brand awareness and customer acquisition.

Digital native: we have built into digital inclusion from the very beginning

COVID-19 has undoubtedly altered our lives in numerous ways, including the way we work. The rise of the COVID-19 virus has led businesses to consider (or in most cases, reconsider) their preparedness measures — increase corporate resilience; ensure internal management and community well-being; and embrace virtual collaboration tools and practices, to name a few. Bitkub has adopted work practices to sustain operations and quickly respond to the demands of navigating COVID-19. As a company that offers an application that makes work from home or online work possible, Bitkub Company is unaffected by COVID-19. Our work experiences are supported by an ecosystem of virtual resources, technology, and behavioural norms that define work as a thing that we do rather than a place we go

We were one of the organisations that had put operational measures in place and could react quickly to the COVID-19 crisis. We might claim that our company is digital native, which means that we have built into digital inclusion from the very beginning. Despite this, the cryptocurrency business, and particularly Bitkub, is less affected by the impact of COVID-19. We are building this company to last for a long time. We were fortunate to have formed a long-term digital strategy for our organisation and have consistently embraced digital tools, systems, and practices required to support team upskilling.

We expand virtual work capabilities by maximising available tools (30 applications) and best practices to support collaboration, productivity, and culture continuity. Because we think that ‘people’ are the most valuable resource, the Bitkub management team has developed an innovative strategy for assisting employees in a variety of areas, including health, morale, and financial support. We will develop a long-term digital vision for the company and constantly learn tools, systems, and practices necessary to support upskilling needed across the workforce. Please see this blog for more details on how we stay devoted to our objective during crises.

For Your Inspiration: new and inspiring office space!

As Bitkub continues to experience phenomenal growth, we’re thrilled to announce our recent move to FYI Center, a new and inspiring office space! FYI Center, short for For Your Inspiration, is a workplace designed to meet the lifestyle needs of the latest generation who want creativity along with work. This relocation signifies not just an address change, but a strategic investment in our future. Our new office boasts significantly more space compared to our previous location. This expansion allows us to accommodate our growing team, particularly the surge in new hires we’ve welcomed recently. Dedicated workspaces foster collaboration and communication, while ample common areas encourage interaction and build a strong company culture. The move to a larger office symbolises our commitment to continued expansion and leadership in the digital asset fintech space. It reflects the incredible growth we’ve achieved and serves as a testament to the dedication of our entire team.

Bitkub Academy

We founded Bitkub Academy intending to prepare people from physical spaces for the forthcoming digital disruption in blockchain and cryptocurrency technology. Bitkub Academy serves as a cornerstone of our commitment to responsible growth. By fostering financial literacy within Thailand, we contribute to a more informed and engaged digital asset ecosystem. This, in turn, strengthens the overall market and benefits all stakeholders. We are committed to developing new educational resources, hosting informative events, and empowering individuals to navigate the future of digital assets confidently.

— Bitkub Academy hosted an educational event ‘Redefine the Future’ with BlockOn Capital that attracted a significant audience, fostering a sense of community and providing valuable insights into the digital asset landscape.

— We developed a course ‘Blockchain & Bitcoin 101’. It equips individuals with the knowledge they need to make informed decisions about digital asset investment.

— To further enhance accessibility, we published a user-friendly pocketbook titled ‘Bitcoin 101.’ This concise resource breaks down complex concepts into easy-to-understand language, empowering newcomers to grasp the fundamentals of Bitcoin and other digital assets. We publish books for those who have never heard of Bitcoin before and are unsure where to begin. This book, Bitcoin 101, will help learners comprehend the world of Blockchain, Cryptocurrency, and Bitcoin.

Bitkub Blockchain Security

We teamed with a professional security team to establish Bitkub Blockchain Security, to deliver security and increase investor trust. Security is the most important issue as Blockchain is a new technology changing the world. We have launched Bitkub Blockchain Security to focus on blockchain security audit, assessment, advisory, and solution.

Bitkub Online

Bitkub app has been hugely successful. It is a top 100 app in the App Store in Thailand, with over 150,000 downloads, and the website has over 2,000,000 views/ month, with an average customer satisfaction rate of 93%. Furthermore, we experienced a roughly 1000 per cent increase in revenue between 2019 to 2020, with a jump from 35 million baht to 330 million baht in 2020. This robust growth demonstrates the increasing adoption of cryptocurrency within Thailand and our position at the forefront of this exciting market.

Our trading volume hit 1 billion baht in CoinGecko for the first time!

According to CoinGecko.com website, Bitkub is rated 13th among cryptocurrency exchanges globally. According to CoinGecko stats, trading volume on the Bitkub exchange increased significantly at the end of November, exceeding $47 million, or nearly 1.4 billion baht in Thai currency. This is considered the highest point that we have ever observed. And this will become the new standard for our trade centre.

We’ve upgraded our Bitkub app to version 3.0, which features full functionality without the need to open a website. The app now has a redesigned home page, a new trading page, in-app KYC, friend invitations, and other features. Stop Limit Features — allowing investors to have better control and manage their portfolios. Stop-limit orders help automate order submissions as traders can set everything in advance and do not have to monitor the market all the time.

Bitkub.com absorbs VAT 7% for customers’ commission fees. We want to assure users that we handle VAT for every customer. As a result, when customers buy or sell digital currency and pay the trading fee (which is typically 0.25%), the price includes the VAT tax derived from the trading fees we collect. Customers will not be charged additional costs.

Bitkub has partnered with Ripple to offer XRP liquidity to banks. As part of the Ripplenet program, we want to introduce blockchain into the human experience. People will use cryptocurrency as a backend transaction protocol to receive and move money at extremely low prices throughout the world. We envision a world where innovation transforms people’s way of life. Ripple is one of the primary actors in helping banks gain huge benefits. Ripple will launch an institutional, cross-border payment with XRP, an open source for accessing and participating in the public sector of XRP cash flow — a standalone digital currency used to support transactions on the Ripple network. Bitkub, Ripple’s official exchange partner in Thailand, has joined the RippleNet initiative. We are on a mission to humanise the blockchain experience so that people would naturally use cryptocurrencies as a transaction protocol on the back end to receive and move money globally at a fraction of the cost. Within the early next year, worldwide money transference at a significantly lower rate would be achievable.

Bitkub has partnered with Trinity — To advise investors to allocate Bitcoin 1–5% of their investments. Bitkub aims to establish partnerships with insurance companies. Trinity is the country’s top securities trading service provider. Bitkub’s objective is to educate Trinity Securities Company representatives on cryptocurrency. Trinity Securities will then share this knowledge with their investors.

Bitkub Blockchain

At Bitkub, we value security above everything else since blockchain technology is a novel innovation that is revolutionising the world. Despite the massive growth in client numbers, there have been no successful assaults on Bitkub’s network.

We successfully hosted a Bitkub Press Conference 2020: The Future is Now! We developed a digital collectables market platform in the form of digital assets based on Blockchain Technology that fans can truly own, such as digital images, birthday videos, card games, and books. $FANS (Fans Token) will be the first token in our system that can be used to create, purchase, trade, and exchange digital collectables from famous influencers around the country. Fans who participate in activities with influencers will acquire $FANS (Fans Token) via the Proof-of-Fan system, which they can use to purchase influencer collectables on the Bitkub marketplace.

Our product development strategy and new features include crypto debit cards, the BitkubPay merchant payment system, and popular staking currencies like DAI and Tezos. The cryptocurrency debit card will be linked to the user’s Bitkub trading account. You may use the card to buy things with the Visa and Mastercard insignia worldwide, and the balance will be deducted from your trading account. The BitkubPay system enables merchants in the program to deploy Bitkub’s Point of Sale devices in their establishments. Customers may also use the Bitkub app to scan and pay for merchandise. Super App is an app that connects to a Bitkub account and allows users to pay a variety of bills, including water, energy, and phone bills. It can also be used to deposit funds into the exchange.

Looking ahead, we are confident that our unwavering dedication to innovation and resilience will position us as a key driver in Thailand’s economic future. The pandemic served as a catalyst for innovation and adaptation at Bitkub. Our success during the pandemic proves that bold decisions in unconventional times can reap significant rewards. We emerged stronger, more agile, and firmly positioned to capitalise on the burgeoning digital asset market. We are prepared to tackle the challenges and opportunities that lie ahead, and we are committed to delivering exceptional value to our stakeholders while revolutionising the financial landscape of Thailand.

Sincerely,
Topp Jirayut Srupsrisopa
Founder and Group CEO of Bitkub Capital Group Holdings Co., Ltd.

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Shareholders Letter 2021

At Bitkub, 2021 was a transformative year for our company, marked by challenges and remarkable achievements. As we reflect on the past year, I am proud to share our progress and our vision for the future.

I am honoured to share that I was recognised as the Bangkok Post CEO of the Year 2021 “Inspirer of the Year”. I am honoured to serve as an executive board member and vice president of the Thai Fintech Association (TFA). These accolades are a testament to our CEO’s visionary leadership and commitment to driving innovation in the financial technology sector.

The global economy experienced significant growth in 2021, with the United States expanding by 5.7%, its strongest annual growth since 1984. This growth was driven by robust consumer spending and a strong labour market. The International Monetary Fund (IMF) projected the global economy around 5% in market exchange rates in 2021, the fastest rate in the 21st century. The IMF also anticipated a return to pre-pandemic global output levels by late 2021 or early 2022. Despite pandemic and inflation risks, the global outlook was generally positive, with McKinsey’s survey showing executive optimism for 2022.

However, challenges emerged, including rising inflation and interest rates, with the Federal Reserve’s most aggressive rate hikes since the 1980s and inflation at a 40-year high. The war in Ukraine and the ongoing pandemic also posed risks, leading to slower growth and higher inflation projections. Overall, 2021 was a year of substantial economic growth coupled with significant challenges and uncertainties as the global economy continued its recovery amid an uncertain path for 2022 and beyond.

Weathering the Storm: A Chance to Grow

The year 2021 saw a surge in our customer base and trading volume, which skyrocketed from $200–300 million daily to highs of $1–2 billion daily. Trading volume increased from an average of 200–300 million baht per day in 2020 to 700 million baht in December 2020 and surged to 4.5 billion baht in the first week of January 2021 alone, straining existing systems. We primarily set a 1,000% growth target at the end of 2020, but this was met quicker than expected. However, this rapid growth also brought challenges, and we received an order from the SEC to suspend our service until we could operate normally. In response, we established a $100 million Customer Protection Fund to support those impacted during this period. For more information about Bitkub’s corrective measures, please visit this blog.

Investing in People: A Good Problem to Solve

As our company experienced rapid growth, we transformed our group every 6 months from how we work to the recruiting process.

In the ‘Wartime’ era, during the company’s establishment, we focused on laying out the business model to build a foundation of stability and generate profits for the company. We had to be nimble, responsive, and sometimes even ruthless in our pursuit of stability and profitability. Every resource was precious, every decision critical, and every mistake potentially costly. This meant making tough decisions, optimising every revenue stream, and maintaining strict control over operations. As CEO, I had to adopt a commanding leadership style, scrutinising every detail and ensuring each decision contributed directly to our bottom line.

Once stability was achieved, we entered the ‘Blitzscaling’ era, which involved expanding the organisation and enabling rapid company growth. This phase was marked by rapid expansion and aggressive growth strategies. We focused on scaling our operations, expanding our market presence, and building our capabilities at an unprecedented pace. This period required a different type of leadership — one that could balance the need for rapid growth with maintaining operational integrity. We had to build systems and processes that could support our expanding operations while maintaining the agility that had served us well during the Wartime phase.

Finally came the Peacetime era, a period of building organisational sustainability, aiming to become a credible institution by focusing on people quality and corporate culture through contributive strategy. This involved optimising for profitability in the short term and then shifting to a long-term strategy focused on building a sustainable and adaptable organisation. As a leader, I’ve had to evolve from being a “timer” — one who merely keeps track of time — to building a “clock” — creating systems and processes that can sustain the organisation beyond any individual’s contribution.

We adopted a “hire slowly, fire fast” approach to ensure we had the best talent on our team. This philosophy stems from our belief that a company is ultimately the average of its employees. Every hire matters, and maintaining high standards for talent is crucial for long-term success. During this time, we established our Core Values — Integrity, Innovation, Excellence, and Collaboration — which would guide us through all phases of our growth. In this era, we’ve recognised that success in the modern business landscape requires more than just traditional intelligence or emotional quotient (EQ) — it demands a high Adaptability Quotient (AQ). We’ve seen firsthand how team members with high AQ navigate change more effectively and contribute more meaningfully to our innovation initiatives. For instance, when we transitioned to a hybrid work model, those with high AQ quickly adapted and even innovated new ways of collaborative working. Our “Thirsty Thursday” sessions have evolved from simple Q&A formats to strategic discussions about our industry’s future. These sessions serve as a platform for open dialogue about our challenges and opportunities, fostering a culture of transparency and collective problem-solving.

We must be an organisation with a clear “Purpose” about what we want to give to this world, and that will create the “Drive” for people in the organisation to be “brave” enough to create change in the world of the future. The journey from Wartime to Peacetime has taught us that successful organisations must be adaptable, but never lose sight of their core purpose. As we look to the future, we remain committed to nurturing an environment where innovation thrives, people grow, and meaningful change is not just possible — it’s inevitable.

Be the First, Break the record, Innovate the world

In 2021, we achieved a number of significant milestones that not only demonstrated our commitment to innovation and excellence but also solidified our position as a leader in the rapidly evolving and increasingly competitive digital assets industry.

— We became Thailand’s first digital assets company to reach unicorn status, and we became the most visited financial website in Thailand, according to Similarweb.com.

— We also launched Thailand’s first native blockchain, Bitkub Chain (KUB), and introduced the first official game on the Bitkub Chain, Morning Moon Village.

— To foster Thailand’s blockchain technology industry and the next generation of developers, we launched the Bitkub Tech Challenge.

— We achieved rapid user growth, reaching 1 million accounts in April and doubling to 2 million accounts by July.

— Bitkub Coin (KUB) saw significant developments, including the release of Bitkub Coin Whitepaper V2 and a strategic move to burn 89% of the supply.

— We also introduced features like Lock KUB & get bonus, Bitkub Next, and the Bitkub Investment Centre at Liberty Square Silom Rd.

— Our achievements also include listing on Coinmarketcap.com and launching the Bitkub NFT Market and Ampverse — NFT Official Store for esports.

Partnerships and Acquisitions

​​Throughout the year, we forged strategic partnerships with a diverse range of industries, including luxury automotive, beauty pageants, real estate, and the music industry. These collaborations allowed us to expand our reach and explore new opportunities in the digital economy. Bitkub has a reliable infrastructure to facilitate the use of cryptocurrencies securely.

We have partnered with Spyder Auto Import to accept cryptocurrencies as exchange for luxury cars.

We have partnered with Miss Universe Thailand 2021 — the world’s first blockchain & cryptocurrency firm to bring NFT Solutions, Digital Asset and many cryptocurrency trends to beauty pageants.

We have partnered with AssetWise, ORIGIN, Ananda, and Siam Real Estate. This collaboration will enable the use of our proprietary cryptocurrency for buying, selling, and investing in real estate properties across the country. This move cements our position as a leader in practical, large-scale blockchain applications. Our development team is working closely with our partners to integrate our blockchain technology into their existing systems. We are engaging with regulatory bodies to ensure full compliance and to help shape future cryptocurrency regulations in the real estate sector. We believe this partnership represents a pivotal moment in our company’s history and the broader adoption of blockchain technology. We are excited about the potential for growth and innovation that lies ahead.

We have established a strategic partnership with The Mall Group, one of the country’s leading retail giants, to create Thailand’s first digital community hub. Together, we will transform the 9th floor of Helix Building, the Emquartier into vibrant hubs for knowledge exchange, meetings, and conferences focused on the digital economy and digital transformation. As Thailand continues its rapid digital evolution, Bitkub M Social will be a physical space that can bring together diverse stakeholders in the digital realm.

The partnership with GQ Apparel focused on Innovation by merging Bitkub with GQ Apparel’s products, potentially leading to the nexus of wearable and financial technology.

The collaboration with Deemoney aimed to revolutionise employee compensation by enabling the payment of bonuses and welfare benefits in cryptocurrency. This partnership showcased the real-world application of digital assets in human resource management and offered employees greater flexibility and control over their finances.

The partnership with GMM Grammy focused on the development of Music NFTs, leveraging Bitkub’s blockchain expertise and GMM Grammy’s music industry presence. This collaboration likely explored the creation of unique digital collectibles representing music albums, songs, or artist merchandise, providing fans with new ways to engage with their favorite artists and potentially creating new revenue streams for the music industry.

Additionally, we are excited to announce that, SCB, Thailand’s oldest bank, has agreed to acquire a 51% stake in Bitkub for 17.85 billion baht, officially making us a ‘unicorn’ startup with a 35 billion baht valuation. This acquisition will allow us to bridge the gap between traditional finance and the digital assets ecosystem, creating a powerful synergy to drive growth and innovation.

Looking Ahead: Becoming the Coinbase of Southeast Asia

Looking back at the beginning and seeing the success today, it seemed virtually impossible. As my team and I pursue the business that follows the global shift, we always act on what we believe. Others don’t believe in the things we do. We are a correct minority. Every fifty years, the meaning of the term ‘money’ changes. It is a shift across the world and a worldwide trend. We are flying with the wind because we are headed in the direction where the world has changed.

If you asked me today, “Is Bitkub a good company”? I would respond, “Maybe it’s good, but the best has yet to be”. We aim to be a great company rather than merely a good one. Our goal is to play a significant role in developing something new and valuable to the entire country. Our goal is to spearhead the shift and motivate the upcoming generation.

Furthermore, I would like to encourage everyone who is trying something new or overcoming any challenges. Don’t be disheartened or give up on your goals just yet. We will learn from everything we do. Like myself, I’ve changed and grown greatly since then. Among Thai startups, Bitkub is the most profitable. We’ve come too far, yet moving forward, it’s not so far off. It would be very disappointing if we did not turn this company into a great and sustainable brand.

As we move forward, our strategic focus is to become the Coinbase of Southeast Asia, leveraging our strong foundation and the resources of our new parent company. We plan to expand in underbanked regional markets with a strong social media penetration rate and the potential of using cryptocurrencies for payments, where there are currently no clear winners. Those countries include Malaysia, the Philippines, and Laos. We are also investigating the viability of growing internationally to increase the company’s competitiveness and establish clients abroad. The expansion will be made possible via acquisitions or new business ventures. We are committed to continuing our innovation, expanding our product offerings, and fostering the growth of the digital assets industry in our country and beyond.

Thank you, our valued shareholders, for your continued support and trust. Together, we will navigate the challenges and seize the opportunities that lie ahead, as we work to build a more inclusive and prosperous financial future.

Sincerely,
Topp Jirayut Srupsrisopa
Founder and Group CEO of Bitkub Capital Group Holdings Co., Ltd.

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Shareholders Letter 2022

Dear Bitkub shareholders,

In Bitkub’s 2019 letter to shareholders, I talked about the remarkable achievements in Bitkub history as we became profitable and the largest cryptocurrency exchange in the country despite all the impacts from COVID-19. Still, the COVID-19 pandemic has led to a severe global recession with different impacts within and across countries. According to the IMF, it expects global growth to be around 3% in 2023 — the lowest medium-term forecast in the report since 2000 with geopolitical fragmentation, historical high inflation, slower labour force growth and weaker prospects for previously fast-growing economies such as China that could increase financial stability risks.

The year 2022 has proven to be a difficult year. Many factors have contributed to macroeconomic uncertainty in 2022, including war, stagflation, increased interest rates by many central banks around the world, and so on. 2023 will be a year of recession, but it will also be a time to manage and prepare to return to the market in 2024, when we forecast that the economy will rebound. I believe in the time of uncertainty, we must learn to prepare ourselves for the worst, while hoping for the best.

In 2022, the cryptocurrency industry in particular has had its own global difficulties, ranging from Terra Luna, Celsius network, and FTX exchange. In May 2022, the cryptocurrency world was plunged into chaos with the sudden collapse of two popular digital coins, Terra USD and Luna, that caused $400 billion to be wiped out from the value of Bitcoin and the cryptocurrency ecosystem. With the value of Bitcoin and all other currencies sinking, large crypto companies like Celsius network, Three Arrows Capital and BlockFi have gone bankrupt, leaving investors large and small out of pocket and with police investigating what happened. Then, there has also been the stunning fall of FTX, one of the most trusted platforms.

Amidst all this, I would like to affirm that Bitkub has a solid stand throughout these downfalls. I believe all events in the cryptocurrency sector are only short-term impacts. The market itself is a new technology, therefore, there is a natural selection happening. “You only find out who is swimming naked when the tide goes out”, veteran billionaire Warren Buffett has said more than once to investors. Thus, only trusted and transparent management can sustain the business in the long run and Bitkub is one of them. With the utmost integrity, we kept our customers’ assets safe. Early this year, we obtained ISO/IEC 27701:2019, a worldwide recognised standard for Privacy Information Management, and this is solid evidence of our integrity.

But before I put forward my vision for the future, I would like to take a moment to acknowledge a significant milestone in our journey — we have recently celebrated our 5-year anniversary! It is truly a remarkable achievement and it has been a transformative journey marked by growth, challenges, and memorable moments. We are immensely grateful for how far we have come since our inception, and we owe it all to your steadfast belief in our mission.

As we passed the 5th year anniversary of Bitkub, I want to take this opportunity to reflect back on some of the significant accomplishments our team has made.

— We saw an increase in our market share to 75.45%, maintaining the market leader status in Thailand, despite the stagnant global economy and markets in 2022 which led to slower growth. Bitkub Exchange is one of the top 25 exchanges in the world. Our trading volume has always been in line with the global trend, hence, the lower revenue and profit compared to 2021. However, we were still very profitable in 2022 and will continue to be in 2023.

— Our increased attention to reinforce the blockchain technology through Bitkub Chain is already achieving results. We released the Erawan Hard Fork in April 2022, an update to improve the number of transactions per second from 2,000 tps to 100,000 tps while partnering with more than 21 leading tech firms who became Bitkub Chain Node Partners. The number of Bitkub Next Wallet users also exceeded 1 million users across 80 countries worldwide in August 2022.

— Bitkub Chain won the first prize in the Technological know-how Award Class (Blockchain) and 2nd prize for Client Classification in Thailand Level of competition ICT Awards (TICTA) 2022.

— Bitkub Academy collaborated with over 40 universities and schools and provided over 300 educational contents to prepare learners for the new era of digital disruption.

— We earned top company awards and rankings in Thailand, including WorkVenture’s Top 50 companies in Thailand, QGEN’s Thailand Most Attractive Company, and PMAT’s Best Recruitment and Employer Brand.

— Our Bitkub group is now not the size of 50, 100, 500 employees but 1,000 passionate and dedicated Bitkubers whose mission is to bring better-qualified products and services to our stakeholders.

— 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.

The new priorities and strategies

I had the opportunity to attend the Annual World Economic Forum Meetings in 2022 and 2023 in Davos, which was an eye-opening experience for me. To be recognised and invited back as panellists for two consecutive years is a testament to the value we bring to these discussions and the impact we have made within our global digital industry.

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 2022 discussion on the topic of “DeFi — The Future of Decentralised Governance” in Davos, Switzerland, in May 2022, alongside international experts such as Rahul Singh — President of Financial Services and Digital Process Operations of HCL Technologies, Akash Shah — CGO of BNY Mellon, and Hans-Paul Bürkner — Global Chair Emeritus of Boston Consulting Group. Early this year in the WEF 2023, I have had the honour of sharing insights and expertise with diverse panellists who are actively engaged in shaping the future of the digital economy and tokenization, including Jeremy Allaire — co-founder of Circle, Michael Casey — CCO of CoinDesk, Timo Harakka — the Finnish Minister of Transport and Communications, and Beryl Li — co-founder of Yield Guild Games (YGG).

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 2023, 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.

On social aspect, Bitkub will provide more benefits to its shareholders in terms of social responsibility to create more long-term values for shareholders. We will focus on risk management to secure our long-term success, decentralise decision-making and encourage more participation in voicing their opinion to optimise our people in the decision processes. I am committed to maintaining transparency throughout this transition and beyond. Regular updates on our sustainability initiatives, progress, and milestones will be shared with all stakeholders and customers. Bitkub will establish Key Performance Indicators (KPIs) to measure and track our sustainability targets, ensuring accountability and meaningful impact.

After all of the short-term noises caused by exogenous shocks throughout 2022, the dust has settled. The year 2023 will be a recession year, but it is a golden chance to manage and prepare for a return to the market in 2024. We sincerely thank you, our stakeholders and customers for your support and belief in our longer-term vision. Together, we can create a future where sustainable practices are at the heart of every business decision, fostering a healthier, and more resilient world for generations to come.

Future Outlook: The next milestones

Bitkub intends to construct a Web 3 ecosystem for Thai people to create a digital economy in addition to digital asset exchange, and plan to enter the Southeast Asian market in 2023. New technologies such as AI, AR/VR, Metaverse, blockchain, and cryptocurrency are on the horizon. We are preparing to modernise all platforms as well as any connected initiatives and take a new step toward being a future leader in digital lifestyle and Web 3 infrastructure.

The development roadmap of Bitkub Chain will explore more applications. Bitkub Metaverse will offer an enhanced digital lifestyle and more functionality, more tools for developers and creators, such as Bitkub NEXT SDK and Creator Studio to attract innovation to be built on the Bitkub Chain. We launched EarnKub 2.0, featuring a new digital lifestyle experience combining physical and virtual worlds to facilitate business implementation.

Looking ahead to the future, we could not be more excited about what lies ahead for our Bitkub. With our newfound focus on sustainability and a deep commitment to making a positive impact, we are confident that we are heading to the right direction. Our next milestone is about pushing the boundaries of innovation and adaptability, focusing on long-term thinking and investment, and committing to continuously focus on customers.

1.Pushing the boundaries of innovation and adaptability

We are dedicated to enhancing children’s potential and promoting access to knowledge and technology for a better quality of life, aligning with SDGs. Innovation is the key to staying ahead of the game and meeting our customers’ ever-changing needs. We foster a culture of curiosity through mini-hackathons, idea challenges, coffee chats with C-level executives, and more. Adaptability is also the core of our future outlook. Our “Bitkuber Careers Growth Program” encourages internal growth, as we are here to build a legacy, not here for comfort.

2.Focusing on long-term thinking and investment

We see immense potential for Bitkub and are committed to long-term thinking and investment to create lasting value and meaningful impact. Strategic resource allocation, in finance, talent, and technology, is paramount for sustainable growth and innovation. We will prioritise R&D to shape the industry’s future. Long-term thinking also necessitates adaptability to market trends and customer preferences, positioning us as industry leaders.

3.Committing to continuously focus on customers

Customer-centricity is a core value. We actively listen to feedback and strive to exceed expectations. Beyond products and services, we aim for exceptional experiences at every touchpoint, offering seamless interactions and personalised support. Our 24/7 customer service and use of tangible metrics underscore this commitment.

In conclusion, I would like to express my gratitude to our beloved shareholders and valued customers for the unwavering support and trust in Bitkub. To our shareholders, I am fully aware that our success depends heavily on the shareholders’ support and trust. Your investment in Bitkub represents not only financial backing but also a vote of confidence in our ability to deliver value and drive growth. To our customers, you are the reason we do what we do. We could not have come this far without your support.

As we look to the future, the potential of digital assets and blockchain technology seems to be imminent. These game-changing technologies have power to revolutionise industries, streamline processes, and create opportunities we never even dreamed of. We are on a journey with blockchain to digitise and nurture truly borderless and global transactions, whether for currencies, assets, or anything of value. 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.

I promise you that Bitkub will continue to bring everyone opportunities with leading technology. Your trust in us means the world to us, and your support is always appreciated. Together, we will continue to navigate the exciting journey ahead, driving innovation and creating sustainable growth.

Sincerely,
Topp Jirayut Srupsrisopa
Founder and Group CEO of Bitkub Capital Group Holdings Co., Ltd.

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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

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*เนื้อหาดังกล่าวจัดทำโดยบริษัท บิทคับ แคปปิตอล กรุ๊ป โฮลดิ้งส์ จำกัด ซึ่งไม่ใช่ผู้ประกอบธุรกิจภายใต้การกำกับดูแลของสำนักงาน ก.ล.ต