Kraken, one of the pioneering cryptocurrency exchanges, is reportedly exploring a final fundraising round ahead of a potential initial public offering (IPO), buoyed by heightened interest from investors amidst the ongoing digital asset market surge. Sources familiar with the matter disclosed that Kraken has received inquiries from prospective investors, indicating a revived enthusiasm for companies in the crypto sector considering public listings.
The exchange is contemplating raising over US$100 million in this funding round, according to one of the sources. With cryptocurrencies edging towards all-time highs and a perceived softening in US regulatory resistance towards digital assets, companies like Kraken are witnessing renewed investor attention, reigniting discussions surrounding IPOs. Notably, Robinhood Markets recently announced its acquisition of the crypto exchange Bitstamp, further fueling industry speculation.
Kraken’s IPO aspirations have been on the agenda since at least 2021, with the exchange now aiming to secure funds through a pre-IPO round, as indicated by two sources requesting anonymity due to the confidential nature of the discussions. The fundraising efforts are expected to be finalized by the end of the year, according to one of the sources. Kraken, established in San Francisco in 2011 under its parent company Payward, declined to provide specific comments on fundraising or IPO plans, reiterating its commitment to advancing global crypto adoption.
Sources further revealed that Kraken is seeking to onboard a prominent company to its board, aiming to bolster its prospects for a successful IPO, potentially slated for as early as next year. While discussions have primarily involved verbal exchanges on terms and valuations, formal documentation has yet to be initiated, as clarified by one source.
Kraken’s journey towards public listing has faced obstacles in the past, including previous downturns in crypto prices and regulatory challenges, notably with the US Securities and Exchange Commission (SEC). While the exchange settled one case with the SEC last year, it continues to navigate legal proceedings concerning other allegations, including accusations of operating unregistered securities broker-dealer activities. Kraken has adamantly refuted these allegations, underscoring its commitment to legal compliance and regulatory engagement as it navigates the path towards potential public listing.
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