Kraken readies for IPO targets 100M fundraising ahead of going public
According to reports from 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 BTC reaching record highs of over $73,000.
During the current crypto market rally, potential investors have shown interest in Kraken, sparking discussions about a pre-IPO round.
Kraken’s IPO Plans and Regulatory Challenges
Kraken had initially considered going public in 2021 but faced setbacks due to the volatility in crypto prices and regulatory obstacles. The exchange encountered regulatory hurdles from the SEC regarding its staking feature. Following the collapse of FTX, the SEC heightened its scrutiny, resulting in difficulties for Kraken. In February 2023, Kraken reached a settlement with the regulator for $30 million. Subsequently, it faced another charge similar to Binance and Coinbase for offering unregistered securities.
Kraken Likely to Secure Funds This Year
Kraken is in search of a prominent company to join forces with to ensure a successful IPO, potentially happening as early as next year. The exchange is projected to generate $1 billion to $2 billion in revenue this year. Sources suggest that Kraken aims to secure the necessary funds by the end of the year to conclude the pre-IPO round before proceeding with the public offering.
In April, Kraken announced its expansion of regulatory licensing in the United States by acquiring TradeStation Crypto, the digital assets division of TradeStation Group.
The Favorable Crypto Environment
The increased interest in Kraken’s potential IPO coincides with the surge in crypto prices and a perceived shift in the regulatory landscape. Notably, the political climate has become more favorable towards cryptocurrencies.
The growing investor interest in Kraken indicates a warming sentiment towards the crypto industry. According to data from The Block, over $5.6 billion has been invested in crypto companies since the beginning of this year.
Tags: funding.