Kraken Considers Funding Round Ahead of IPO
Cryptocurrency exchange Kraken is reportedly considering a funding round that could lead to an IPO next year.
Kraken, a digital asset exchange, is purportedly negotiating a final funding round in anticipation of a potential initial public offering (IPO). This occurs in the context of the cryptocurrency market’s recent upswing, which has seen Bitcoin reach all-time highs exceeding $73,000.
Kraken, anticipating an IPO for years, has received inquiries from prospective investors in response to the cryptocurrency market’s recovery.
Bloomberg reported, citing sources familiar with the matter, that the exchange aims to raise $100 million in the new funding round. The funding round may be finalized by the end of the year, even though the company had previously indicated that it would go public in 2021.
The company is pursuing a “marquee” to join its board to ensure a successful IPO, as stated in the report, with an IPO anticipated to occur as early as next year.
Sources indicate that negotiations regarding valuations and other matters are underway even though talks are still in the preliminary phases. The organization continues prioritizing investment activities without commenting on its initial public offering.
“We are perpetually investigating strategic avenues to advance Kraken’s Mission, which is to expedite the global adoption of cryptocurrency.” We are entirely committed to investing in this objective.
Kraken has encountered regulatory obstacles from the Securities and Exchange Commission (SEC) regarding its staking feature, among other things. Following the collapse of FTX, the SEC increased its scrutiny, which resulted in the Kraken debacle.
The exchange settled with the regulator in February 2023, agreeing to pay $30 million. Subsequently, it was subjected to an additional charge comparable to those of Binance and Coinbase for the provision of unregistered securities.
Similar to the Coinbase situation in 2021, discussions regarding an IPO have arisen due to the recent increase in the prices of Bitcoin and altcoins. Coinbase went public in 2021, when Bitcoin reached an all-time peak of over $64,000, accompanied by a surge in market inflows.
The current favorable trend will likely motivate investors in addition to other factors. The market has achieved yet another victory due to the recent change in US regulatory pressure. Analysts have praised the efforts to clarify regulations, as crypto measures have garnered bipartisan support in recent weeks.
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