Kraken Gears Up for IPO Targets 100M in Funding Ahead of Public Debut

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

Amidst the ongoing rally in the crypto market, Kraken has received inquiries from potential investors, sparking discussions about a pre-IPO round. The exchange had initial plans to go public and has been mulling over an IPO since 2021. However, previous crypto price volatility and regulatory challenges have hindered its plans.

Kraken has faced regulatory obstacles from the SEC, particularly related to its staking feature. Following the collapse of FTX, the SEC has increased its scrutiny, causing difficulties for Kraken. In February 2023, the exchange reached a settlement with the regulator for $30 million. Subsequently, it faced another charge similar to Binance and Coinbase for offering unregistered securities.

Kraken is likely to secure funding by the end of this year and is seeking a prominent company to join forces for a successful IPO, possibly in the coming year. The exchange is projected to generate revenue between $1 billion to $2 billion this year, and sources suggest that Kraken will aim to raise funds by the end of the year to complete the pre-IPO round before proceeding with the public offering.

In April, Kraken revealed its expansion in regulatory licensing in the United States by acquiring TradeStation Crypto, the digital assets division of TradeStation Group.

The resurgence of interest in Kraken’s potential IPO coincides with the soaring crypto prices and a perceived change in the regulatory environment. Notably, the political climate has become more favorable towards cryptocurrencies. The increased investor interest in the exchange indicates a growing acceptance of the crypto industry. According to data from The Block, over $5.6 billion has been invested in crypto companies since the beginning of the year.