Three people who loved digital currency found a hole in the European market that would start a fintech revolution in the middle of Vienna, Austria. Bitpanda was started in 2014 by Eric Demuth, Paul Klanschek, and Christian Trummer. Their goal was to make investing in digital assets easy, safe, and available to everyone. What started as a place to trade cryptocurrencies has grown into Europe’s best digital investment platform, reaching unicorn status and changing the way people and businesses interact with money. This is the amazing story of Bitpanda’s journey.
The Beginning: Fixing a Problem in Europe
In 2013, buying and selling Bitcoin in the EU was a pain because there were a lot of rules to follow and not many platforms that were compliant. Demuth, Klanschek, and Trummer, who are all very interested in blockchain technology and new ways to handle money, saw a chance to solve this problem. Instead of complaining about the lack of solutions, they chose to make one. They started Coinimal GmbH on September 12, 2014. Soon after, it became known as Bitpanda, a name that would become famous in the fintech world.
The founders had a clear goal: to make a platform that was easy to use and gave everyone access to digital assets, no matter how experienced they were. They used their combined knowledge of finance, technology, and blockchain to create a centralized cryptocurrency exchange that put security, compliance, and user experience first. Bitpanda’s first goal was to let people trade popular cryptocurrencies like Bitcoin and Ethereum. But the founders always had bigger plans: to change the way people invest.
Early Growth and New Ideas
Bitpanda’s platform came out in 2014 and had a sleek interface that was easy for both new and experienced traders to use. The platform’s easy-to-use design and dedication to following the rules quickly gained popularity, drawing users from all over Europe. In 2017, Bitpanda teamed up with Österreichische Post, which let people buy Bitcoin vouchers at more than 1,800 post offices. This was a big step forward that made cryptocurrencies easier for everyone to get. That year, the company had only 15 employees, but it handled transactions worth €600 million and made €11.16 million in profit, which showed how quickly it was growing.
Coinimal GmbH changed its name to Bitpanda GmbH in 2018 to make the company’s name match its trading platform. In the next year, Bitpanda added more than just cryptocurrencies. It started trading in precious metals and released its token, BEST, which gave users discounts on trading fees. These new features made Bitpanda even more well-known as a flexible and forward-thinking platform.
The First Unicorn in Austria
Bitpanda’s growth sped up in 2020 because more people around the world were interested in cryptocurrencies and the company was expanding in smart ways. In September 2020, Bitpanda got $58.2 million in a Series A funding round from Valar Ventures, Peter Thiel, and Speedinvest. With this money, the company was able to grow internationally and enter markets like France, Spain, and Turkey. In March 2021, just six months later, Bitpanda raised $170 million in a Series B round, bringing its value to $1.2 billion and making it Austria’s first unicorn startup.
By August 2021, Bitpanda had raised another $263 million, bringing its total value to $4.1 billion in just five months. Investors like Valar Ventures, DST Global, Alan Howard, and Redo Ventures saw that Bitpanda could become the biggest digital investment platform in Europe. The company’s quick success in raising money showed that it could take advantage of the cryptocurrency boom while also establishing itself as a full-service investment platform.
A Pan-Investment Platform: Expanding the Vision
Bitpanda changed from being a cryptocurrency exchange to a multi-asset investment platform on purpose to make investing open to everyone. The company got a license to trade securities in April 2021, which means it can buy fractional stocks and ETFs. This change made it possible for people to invest in traditional assets with as little as €1, which broke down financial barriers. Bitpanda also released a Visa-backed debit card that lets users buy things every day with cryptocurrencies, precious metals, or regular money. This is a useful way to connect digital and traditional finance.
The company’s hypergrowth was made possible by its technological infrastructure, which was based on Amazon Web Services (AWS) and GitLab. AWS helped Bitpanda grow quickly even when the market was unstable, and GitLab made it easier for its team of over 700 developers to work together. These tools were very helpful in keeping track of a customer base that grew to over 4.5 million by 2024, with 25% of those users in Germany.
Bitpanda also released Bitpanda Technology Solutions, a white-label API that lets banks and fintechs give their customers the ability to trade. Bitpanda has shown that it is a reliable infrastructure provider by working with companies like N26, Raiffeisenbank Niederösterreich-Wien, Coinbase, and Deutsche Bank. In 2024, its partnership with Landesbank Baden-Württemberg (LBBW) helped it reach even more people by letting businesses hold and trade cryptocurrencies.
Problems and Strength
Bitpanda’s journey wasn’t always easy. In 2022, Bitcoin’s price dropped by 70%, and the company quickly hired a lot of new people, which led to the layoffs of about 270 people. The company admitted that its rapid growth had outpaced market conditions, but it quickly changed its focus to sustainability and efficiency.
Security and following the rules were still the most important things. Users and regulators trust Bitpanda because it is ISO 27001 certified, has cold storage solutions, and follows GDPR and AML rules. The company got a full crypto license from Germany’s BaFin by 2023 and opened more offices in the UK, UAE, and other places. Its revenue went up from $98.66 million in 2022 to $161.81 million in 2023, which shows how strong and flexible it is.
A Plan for the Future
Bitpanda is no longer just a place to trade cryptocurrencies; it’s now a platform that lets more than 4.5 million people invest in more than 3,000 digital assets, such as stocks, ETFs, precious metals, and crypto indices. Its Bitpanda Business division works with more than 3,000 businesses to provide customized solutions for their digital investments. The company is set up for more innovation because it focuses on education, community, and cutting-edge technology. For example, it put $10.27 million into AI for a robo-advisor.
Bitpanda’s story shows how important it is to have a vision, stick with it, and be able to change. Bitpanda has changed what it means to invest. It started as a startup in Vienna that solved a local problem and has grown into a fintech giant that is changing the future of finance in Europe. Bitpanda’s overnight success took seven years, according to co-founder Eric Demuth in a 2021 CNBC interview. This journey was full of bold choices, smart partnerships, and a strong dedication to making finance available to everyone.
Bitpanda is still focused on its original goal: to break down financial barriers and give everyone the tools they need to build their financial future. This is true even as the company grows its offerings and presence around the world. Bitpanda is a shining example of simplicity, safety, and opportunity in a world where money matters are often complicated and hard to get into.
