Kraken Considers Pre-IPO Funding Round Amid Crypto Market Rally
Crypto exchange Kraken is reportedly considering raising a final funding round ahead of a potential initial public offering (IPO).
According to Bloomberg, the exchange has received inquiries from potential investors during the current crypto market rally. This has reportedly prompted discussions of a pre-IPO round.
Key points:
- Kraken is exploring the possibility of raising more than $100 million in a pre-IPO round.
- The exchange has been considering an IPO since at least 2021.
- Kraken is seeking a “marquee” company to join its board and help ensure a successful IPO as early as next year.
- The exchange is expected to generate $1 billion to $2 billion in revenue this year.
Sources indicate that Kraken would likely seek to raise the funds by year-end. This is with the goal of completing the pre-IPO round before moving forward with the public offering.
Also read: Robinhood To Acquire Bitstamp In $200 Million Deal
Kraken had prior plans to go public
Kraken had earlier ideas of going public. However, its plans were hindered by previous volatility in crypto prices and regulatory challenges. The exchange also settled one case with the U.S. Securities and Exchange Commission (SEC) last year.
The renewed interest in Kraken’s potential IPO comes amidst a backdrop of rising cryptocurrency prices and a perceived shift in the regulatory landscape. The report also comes at a time when the political climate has become more favorable toward cryptocurrencies.
Kraken is reportedly seeking a high-profile company to join its board and help ensure a successful IPO, which could take place as early as next year.
According to Bloomberg analysts, Kraken is also expected to generate substantial revenue this year, with estimates ranging from $1 billion to $2 billion.
