"OSL Bets Big on Asia’s Crypto Future—Even as Losses Grow"

OSL Group reported a 58% year-on-year increase in revenue during the first half of 2025, reaching HK$195.4 million ($25.1 million), despite its operating losses doubling to HK$20.3 million ($2.6 million) compared to HK$9.6 million ($1.2 million) in the same period of the previous year [1]. The company attributed the widening losses primarily to a significant expansion in headcount, which grew from 167 employees to 568 within a year, as it accelerates global expansion [2]. The increased operational costs associated with this growth have pressured profitability, yet the firm remains focused on long-term market share gains and infrastructure development.

The revenue growth was driven by both organic expansion and strategic acquisitions in key Asian markets. Notably, OSL acquired Japanese crypto exchange CoinBest in February 2025 and secured a 90% stake in Indonesian exchange operator Evergreen Crest for $15 million in June [3]. These moves aim to consolidate OSL’s presence in emerging markets and diversify its service offerings. The firm also launched OSL Pay in April 2025, a crypto on- and off-ramp platform that generated HK$55.9 million ($7.2 million) in revenue during the first half of the year, contributing 29% of total group revenue [4]. The division’s performance underscores the growing demand for digital asset payment solutions and highlights OSL’s strategic shift toward diversification.

OSL’s CEO, Kevin Cui, emphasized the company’s strong performance in both revenue and transaction volume while noting its continued leadership in the Hong Kong ETF custodial assets market [5]. Despite the operating losses, the firm’s stock saw a 6.6% increase in midday trading following the earnings report. The shares are up 114.3% year-to-date, although they have dipped 5.2% in the past month, reflecting investor confidence in its growth trajectory despite short-term volatility.

To fund further expansion, OSL completed a $300 million equity financing round in July 2025, marking the largest publicly disclosed capital raise in Hong Kong’s crypto sector to date [2]. The proceeds will support the development of regulated stablecoin infrastructure, licensing in new jurisdictions, and the launch of a compliant digital payments network. The firm is also navigating the evolving regulatory environment in Hong Kong, which recently introduced a second major policy on digital assets, emphasizing stablecoin regulation and real-world asset tokenization as part of its fintech strategy.

OSL’s financials and strategic direction highlight the broader trends in the crypto industry, where firms are balancing aggressive expansion with the need to maintain profitability. The company’s ability to grow revenue despite rising costs indicates its strong market position, particularly in Asia. However, its performance will depend on its capacity to convert current investments into sustainable revenue streams while maintaining compliance with increasingly stringent regulatory frameworks.

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