Kraken Gears Up for IPO Targeting 100M in Fundraising Ahead of Public Debut

According to a report by Bloomberg, Kraken is contemplating a final round of funding before its Initial Public Offering (IPO). The exchange is looking to raise $100 million in this new funding round, coinciding with the surge in crypto prices, particularly with BTC reaching record highs of over $73,000.

Investors have shown interest in Kraken during the current crypto market boom, sparking talks of a pre-IPO round. Kraken had initially considered going public in 2021, but faced setbacks due to market volatility and regulatory issues.

The SEC has raised concerns about Kraken’s staking feature, and after the collapse of FTX, the scrutiny from the SEC intensified, resulting in a rough patch for Kraken. In February 2023, Kraken reached a settlement with the regulator for $30 million. Subsequently, it faced charges similar to Binance and Coinbase for offering unregistered securities.

Kraken is now eyeing a successful IPO, aiming to bring on board a prominent company to ensure a smooth process, potentially happening as early as next year. The exchange is projected to generate between $1 billion to $2 billion in revenue this year, with plans to raise funds by the end of the year to finalize the pre-IPO round before proceeding with the public offering.

In a strategic move, Kraken recently expanded its regulatory licensing in the United States by acquiring TradeStation Crypto, the digital assets division of TradeStation Group.

The heightened interest in Kraken’s potential IPO is fueled by the booming crypto market and a changing regulatory environment, with the political climate becoming more favorable towards cryptocurrencies. The increased investor interest in Kraken reflects a growing acceptance of the crypto industry, with over $5.6 billion invested in crypto companies since the start of the year.

Tags: funding