Bitrabo Editorial
The US-based cryptocurrency platform, Kraken, is contemplating a final funding round as it looks into the option of going public, sources revealed. The company has attracted interest from potential investors due to the current surge in the digital asset market.
Kraken Prepares for Pre-IPO Fundraising
Sources indicated that Kraken is planning to secure over $100 million in funding, amidst growing investor interest and evolving regulatory perspectives on digital assets in the US. A recent report also highlighted Robinhood’s acquisition of Bitstamp.
Kraken has been mulling over an IPO since 2021 and is now gearing up for a funding round, possibly leading up to an IPO, which is anticipated to conclude by year-end.
Established in 2011 in San Francisco under its parent company Payward, Kraken remains dedicated to its objective of advancing the global adoption of cryptocurrencies.
Despite its long-standing intent to go public, Kraken has faced setbacks such as market downturns and regulatory hurdles, including legal disputes with the US Securities and Exchange Commission (SEC).
While one SEC case was settled in 2020, Kraken is currently embroiled in another case over allegations of operating an unregistered securities broker-dealer, clearing agency, and exchange, which the company refutes.
Positive Regulatory Environment
Recent months have seen a more favorable approach towards cryptocurrencies from US regulators and policymakers, as crypto gains prominence in the presidential campaigns. The SEC’s green light to Bitcoin ETFs and its progress towards approving similar funds for Ethereum indicate a growing acceptance of digital assets.
According to Bloomberg, Kraken is expected to generate revenue between $1 billion and $2 billion this year, propelled by the surge in crypto prices throughout the year. In comparison, Coinbase, the leading US crypto exchange that went public in 2021, is forecasted to reach $5.9 billion in revenue.
Kraken is actively seeking a new board member to facilitate a successful IPO, possibly as early as next year. Talks have revolved around terms and valuations informally, with no formal agreements as yet.
The total cryptocurrency market capitalization currently stands at $2.5 trillion, with Bitcoin, the leading cryptocurrency, holding steady above $70,000.
Image source: DALL-E, chart from TradingView.com