Around 15% of the premium corporate real estate in Hong Kong is now occupied by cryptocurrency startup companies and investment firms.
According to a recent report by the South China Morning Post, cryptocurrency-related companies are collectively paying $1.3 million per month in rent. The current cost per square foot in Hong Kong’s prime office buildings stands at around $307.
As a comparison, the report notes, the same monthly, collective rent costs would be enough for approximately 5 floors in NYC’s One World Trade Center. Notable names leasing office space include BitMEX, a popular leveraged crypto derivatives trading platform, and Diginex, which runs virtual currency mining operations.
Despite the 2018 bear market, crypto companies have continued to lease expensive real estate, which supposedly benefits the firms’ talent acquisition, further building out the blockchain ecosystem in Hong Kong.
“Blockchain companies show no signs of slowing their expansion in Hong Kong,” said Philip Pang, an associate director of office services at Colliers International. “These firms are leasing space in top-tier office buildings to attract and retain talent.”
This coincides with recent reports that show blockchain and cryptocurrency jobs have jumped more than 50% in Asia since 2017, as both startups and established enterprises have begun building out dedicated focus on the technology.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.