Breaking: Kraken Considers Funding Round Ahead of IPO
Digital asset exchange Kraken is reportedly in talks for a final funding round ahead of a prospective initial public offering (IPO). This comes amid the rally of crypto prices with Bitcoin hitting all-time highs above $73,000. Kraken, which has tipped an IPO for many years, has received inquiries from likely investors on the back of the crypto rebound.
Kraken Eyes Funding Round, IPO
The exchange seeks to raise $100 million in the new funding round, Bloomberg reported citing sources familiar with the matter. While the company tipped going public in 2021, the funding round might be completed before the end of the year. According to the report, the company targets an IPO as early as next year and is in search of a “marquee” to join its board for a successful IPO.
Although talks are still in the early stages, sources say talks are in motion regarding valuations and other matters. The company remains focused on investing without any comments on the IPO.
“We are always exploring strategic paths toward Kraken’s Mission; accelerating the global adoption of crypto. We remain fully focused on investing in this goal.”
Kraken has faced regulatory hurdles from the Securities and Exchange Commission (SEC) regarding its staking feature amongst others. Sequel to the collapse of FTX, the SEC intensified scrutiny leading to a debacle with Kraken. In February 2023, the exchange settled with the regulator for $30 million. Afterward, it still faced another charge similar to Binance and Coinbase for offering unregistered securities.
Crypto Rebound Spurs IPO Plot
The surge in Bitcoin and altcoin prices has led to talks concerning an IPO similar to the Coinbase situation in 2021. Coinbase went public in 2021, a year that saw Bitcoin hit an all-time high above $64,000 with rallying inflows in the market. The present bullish drive is said to ignite investors amid other factors. The recent shift in US regulatory pressure is another win for the market. In recent weeks, crypto bills have seen bipartisan support with analysts lauding the efforts towards rule clarity.
Also Read: Bitcoin (BTC) Price Eyes $72,000 As 9 ETFs Bags $492M Inflow
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