Cryptocurrency exchange Kraken is seeking over $100
million before a potential initial public offering (IPO), Bloomberg reported.
The crypto exchange, founded in San Francisco in 2011, has long
discussed going public. This move is reportedly fueled by a surge in investor
interest and a perceived softening of regulations against digital assets.
Discussions with Potential Investors
According to insiders, the fundraising could be
completed by the end of the year. Kraken aims to attract a special-purpose
acquisition company to ensure a successful IPO, potentially as soon as next
year. So far, the discussions with potential investors have been informal,
focusing on terms and valuations.
Kraken’s journey toward an IPO has not been without
challenges. The exchange has faced a downturn in crypto prices and conflicts
with the US Securities and Exchange Commission (SEC). Kraken settled one case
with the regulator last year but continues to dispute allegations of operating
as an unregistered securities broker, dealer, and exchange.
In recent months, US regulators and politicians have
shown a more favorable stance toward crypto. The SEC approved exchange-traded
funds investing directly in Bitcoin in January and made steps toward approving
similar funds for Ether in May. Crypto has also emerged as a political issue,
with presidential candidates vying to appear crypto-friendly.
With the crypto market rallying, Kraken is expected to
generate $1 billion to $2 billion in revenue this year, according to insiders.
By comparison, Coinbase, which went public through a direct listing in 2021, is
forecast to have revenue of $5.9 billion.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.
