Kraken Getting Ready for IPO Seeks to Raise 100 Million Prior to Going Public

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, with Bitcoin (BTC) reaching record highs of over $73,000.

With the ongoing rally in the crypto market, potential investors have shown interest in Kraken, sparking discussions about a pre-IPO round.

Kraken’s IPO plans have been in the works since 2021, but were delayed due to previous volatility in crypto prices and regulatory obstacles. The exchange has faced challenges from the SEC regarding its staking feature, and after the collapse of FTX, the SEC increased its scrutiny, resulting in a setback for Kraken. In February 2023, Kraken settled with the regulator for $30 million. Subsequently, it faced another charge similar to Binance and Coinbase for offering unregistered securities.

Kraken is looking to secure a prominent company to support its IPO, which could potentially take place next year. It is projected to generate revenue between $1 billion to $2 billion this year, and sources suggest that Kraken aims to raise funds by the end of the year to finalize the pre-IPO round before proceeding with the public offering.

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

The renewed interest in Kraken’s potential IPO comes amidst the surge in crypto prices and a changing regulatory environment. The political climate has also become more favorable towards cryptocurrencies, contributing to the positive outlook for Kraken.

The increased investor interest in the exchange indicates growing confidence in the crypto industry. Data from The Block shows that over $5.6 billion has been invested in crypto companies since the beginning of the year.

Tags: funding.