Crypto firms are taking space in skyscrapers that banks can’t afford

Cryptocurrency companies are leasing space in some of Hong Kong’s most prestigious buildings with some of the priciest rents that even banks are avoiding.

Companies like BitMEX and Diginex Ltd. have leased a total of 72,000 square feet of grade A space so far this year in Hong Kong’s Central and Causeway Bay, Bloomberg reported, citing figures from Colliers International. That makes up about 15 percent of grade A space that mainland Chinese firms have taken up since January.

Expensive rents have caused some banks like BNP Paribas and Goldman Sachs to look for cheaper locations, but the cryptocurrency firms can afford the prices and are paying an estimated $1.3 million a month altogether.

“Blockchain companies show no signs of slowing their expansion in Hong Kong,” Colliers’ Philip Pang told Bloomberg. “These firms are leasing space in top-tier office buildings to attract and retain talent.”

Meanwhile, in upstate New York, a town has placed a moratorium on crypto firms looking to move in. Crypto firms have been attracted to Plattsburg because of its hydroelectric dam: the town has cheaper electric costs, which pencils out to savings for crypto mining operations. However, it’s taking a toll on the town’s electric grid. [Bloomberg] – Eddie Small