Change in Perception? Bankers Lefting the Buildings, Crypto Startups To Fill
Only a small amount of places in the world like New York and London is expensive as Hong Kong when it comes to real estate. Despite that expensiveness, the cryptocurrency startups filling the skyscrapers in Hong Kong. Most recently, Ethereum and Bitcoin margin trading platform BitMEX has moved its headquarters to a building called Cheung Kong’s centre 45th floor as they rent out 20,000 square feet at $28,66 per square foot. Quite an expensive move.
It might just be a random news for all of us, but considering the bankers are lefting those buildings, cryptocurrency startups filling them is quite a perception. It’s meaning that these startups are taking the huge set of profits and it’s certainly a good indicator for the sector in the long-term future.
Recently, the local news agency based in Hong Kong stated major banks like Goldman Sachs and BNP Paribas considering moving out of these buildings because of the rise in the rental fees as they are looking for cheaper offices.
The news agency reported both banks are looking to cut out of more than 30 percent of rental fees by moving to cheaper places but BitMEX’s move is quite interesting.
Despite the strong correction in the cryptocurrency market, we can easily say that the infrastructure and adoption in the space are certainly growing by each day. With companies like BitMEX taking huge profits because of the margin trading, we can also expect in the future other startups to do the same.
Denis Ma, who is the head of research at Jones Lang LaSalle, said:
“It’s pretty common for landlords to ask for larger deposits from tenants with weaker covenant strength. Landlords are always open to taking on new tenants, it’s just a matter of balancing rent against flight risk,”
BitMEX’s rental fees could easily buy a building in the major cities like Kuala Lumpur, Tokyo and Busan so that’s another indicator how much that they are paying.