Key Points:
Kraken pre-IPO fund raising round is seeking over $100 million, and it is aiming to complete the round by the end of the year to set the stage for a potential IPO.
The exchange faces ongoing regulatory challenges but remains focused on accelerating global crypto adoption and enhancing its board for better IPO prospects.
Cryptocurrency exchange Kraken is reportedly in discussions to secure over $100 million in pre-IPO funding, according to Bloomberg.
Kraken Pre-IPO Fund Raising Targets $100M
Kraken pre-IPO fund raising round is anticipated to close by the end of the year, setting the stage for a potential initial public offering (IPO).
Founded in San Francisco in 2011, Kraken is one of the oldest cryptocurrency exchanges. The exchange is eyeing this final funding round in response to heightened investor interest fueled by the recent rally in digital asset markets. This resurgence in interest coincides with a notable increase in cryptocurrency valuations and a perceived easing of U.S. regulatory pressures on digital assets.
Kraken's journey towards an IPO has been ongoing since at least 2021, but the company has encountered challenges due to past downturns in crypto prices and regulatory hurdles. The company has had contentious interactions with the U.S. Securities and Exchange Commission (SEC), including settling one case last year and contesting another involving allegations of operating as an unregistered securities broker, dealer, clearing agency, and exchange. Kraken has consistently denied these allegations.
Growing Investor Interest in the Crypto Sector
In a statement, the exchange reiterated its commitment to accelerating global crypto adoption but declined to comment specifically on Kraken pre-IPO fund raising round or IPO plans. "We remain fully focused on investing in this goal," the statement read.
As part of its IPO preparations, Kraken is reportedly seeking to add a high-profile company to its board to enhance its public offering prospects, potentially as soon as next year. So far, discussions have involved verbal negotiations on terms and valuations without formal documentation.
The broader crypto sector is attracting increasing attention from investors and policymakers alike. Robinhood recently announced plans to acquire Bitstamp, another prominent crypto exchange. Additionally, U.S. regulators have shown a more favorable stance towards crypto, exemplified by the SEC's approval of exchange-traded funds investing in Bitcoin and steps towards approving similar funds for Ether. Cryptocurrency has also become a significant topic in political circles, with presidential candidates striving to present themselves as industry supporters.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
