Kraken Bolsters IPO Ambitions With Plans Of A Massive $100 Million Funding Injection

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As a seasoned crypto investor with a keen interest in the industry’s developments and a deep understanding of the regulatory landscape, I find Kraken’s potential pre-IPO funding round and upcoming IPO plans intriguing. The renewed interest from investors and favorable regulatory winds in the US are encouraging signs for the crypto sector as a whole.

According to insider sources, US cryptocurrency exchange Kraken is contemplating a last-round financing and potentially initiating an Initial Public Offering (IPO) as it evaluates the surge in the digital asset market’s value. Prospective investors have reportedly expressed interest in investing in Kraken.

Kraken Gears Up For Pre-IPO Funding Round

Based on Bloomberg’s report, insiders indicate that Kraken could aim to raise over $100 million in new funding. The surge of investor interest and perceived regulatory changes towards digital currencies in the US have revived talks about crypto companies considering a public listing. Not long ago, Bitcoinist announced Robinhood’s acquisition of Bitstamp, another significant development in this sector.

Since at least 2021, Kraken has been considering going public through an IPO. A pre-IPO financing round, which could pave the way for this, is predicted to be concluded by the end of the year based on information from a reliable source.

Founded in San Francisco in 2011 as a subsidiary of Payward, Kraken continues to prioritize driving the widespread use of cryptocurrencies around the world.

Kraken, which has long aimed to become a publicly traded company, has faced setbacks due to financial market declines and regulatory hurdles, such as protracted disputes with the SEC over various issues.

In 2020, Kraken resolved one dispute with the Securities and Exchange Commission (SEC). However, the SEC has levied additional charges against the company, alleging that it functions as an unregistered securities broker-dealer, clearing agency, and exchange. Kraken denies these claims.

Favorable Regulatory Winds

Over the past few months, there has been a more welcoming attitude towards cryptocurrencies from American regulators and policymakers as the focus of the US presidential campaigns has evolved. Cryptocurrency has emerged as a significant topic in the competition for the presidency.

As a researcher studying the financial markets, I’ve observed an intriguing development: The US Securities and Exchange Commission (SEC) has given its approval to exchange-traded funds (ETFs) investing in Bitcoin. Furthermore, they are actively considering similar approvals for Ethereum-based ETFs. This trend signifies a significant shift towards accepting digital assets within the traditional financial infrastructure.

Based on Bloomberg’s report, Kraken is expected to earn between one and two billion dollars in revenue this year, as sources close to the matter have revealed.

Compared to other major US cryptocurrency exchanges, Coinbase – the largest one that held a direct listing in 2021 – is projected to generate approximately $5.9 billion in revenues, according to estimates from Bloomberg’s financial analysts.

Kraken is currently looking for a suitable partner to collaborate with on their upcoming IPO (Initial Public Offering) board, which could take place as soon as next year. Informal talks regarding the terms and evaluations have taken place so far, but no formal agreements have been documented yet.

Kraken Bolsters IPO Ambitions With Plans Of A Massive $100 Million Funding Injection

As a crypto investor, I’m excited to note that the overall value of the cryptocurrency market has reached an impressive milestone, with a total market capitalization of approximately $2.5 trillion. Meanwhile, Bitcoin, the undisputed leader in this space, continues to hold steady above a crucial price point: $70,000.

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2024-06-07 09:11