Kraken Getting Ready for IPO Targeting 100M in Funding Ahead of Public Offering

Kraken is rumored to be contemplating a final round of funding before its Initial Public Offering (IPO), as reported by Bloomberg. The exchange is looking to raise $100 million in this new funding round, taking advantage of the current surge in crypto prices, with BTC reaching record highs of over $73,000.

During the recent crypto market rally, potential investors expressed interest in Kraken, sparking discussions about a pre-IPO round. The exchange has been contemplating going public since 2021, but previous volatility in crypto prices and regulatory challenges have delayed its plans.

Kraken has faced regulatory obstacles from the SEC due to its staking feature, and after FTX’s collapse, the SEC increased its scrutiny, causing issues for Kraken. In February 2023, the exchange settled with the regulator for $30 million. Subsequently, it faced another charge similar to Binance and Coinbase for offering unregistered securities.

Kraken is now looking to bring on board a prominent company to ensure a successful IPO, potentially happening as soon as next year. The exchange is projected to generate $1 billion to $2 billion in revenue this year, and sources suggest that Kraken aims to raise funds by the end of the year to complete 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 growing interest in Kraken’s potential IPO coincides with the increasing crypto prices and a changing regulatory environment, with a more favorable political climate towards cryptocurrencies. The heightened investor interest in the exchange indicates a growing acceptance of the crypto industry. According to The Block’s data, over $5.6 billion has been invested in crypto companies since the beginning of the year.