Kraken Considers $100 Million Fundraising Round Before Potential IPO
On Thursday, Bloomberg reported that Kraken, a US-based crypto exchange, is considering raising a final funding round of more than $100 million ahead of a possible initial public offering (IPO).
This strategic move aligns with the digital asset market’s resurgence, drawing potential investors and showcasing a recovering industry.
Regulatory Challenges Loom as Kraken Prepares for IPO
Kraken aims to complete this fundraising by the end of the year, leveraging the favorable market conditions to prepare for the IPO. The exchange is also seeking a “marquee” company to join its board, aiming for a successful IPO as soon as next year.
Kraken reportedly has been discussing an initial public offering since at least 2021. At the time of publication, Kraken declined to comment specifically on the fundraising or IPO plans. However, the company reaffirmed its commitment to boosting global crypto adoption.
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“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,” it stated.
Despite its IPO plan, Kraken has faced significant regulatory challenges in recent years, including a high-profile case with the US Securities and Exchange Commission (SEC). In 2023, the company settled charges related to its staking services, agreeing to pay a $30 million fine and cease these services in the US.
This year, the company is facing a new case with the agency. The SEC accused Kraken of operating an unregistered securities broker-dealer, clearing agency, and exchange.
These charges resemble those previously levied against another US-based crypto exchange—Coinbase. However, Kraken continues to dispute new allegations from the SEC.
The prospect of a Kraken IPO has generated considerable buzz within the crypto community. Market observers speculate that a successful IPO could indicate a positive shift in the regulatory environment for digital assets.
“If VCs are gonna fund Kraken here assuming an IPO, they must be assuming a complete 180 in crypto regulatory issues given the Coinbase lawsuit,” Leigh Drogen, general partner at investment firm Starkiller Cap, speculated.
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Renowned crypto trader Satoshi Flipper also remarked that Kraken’s IPO might mirror the timing of Coinbase’s IPO in 2021. This potentially marks a peak in the market cycle.
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