Major US Crypto Exchange Wants to Raise $100 Million Before IPO

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As a seasoned crypto investor who’s been through the ups and downs of this volatile market, I’ve grown accustomed to the rollercoaster ride that comes with investing in digital assets. The latest news about Kraken’s plans to raise funds ahead of its IPO has piqued my interest.

According to a Bloomberg report based on unnamed sources, cryptocurrency exchange Kraken is planning to secure approximately $100 million in funding prior to its Initial Public Offering (IPO).

The report says that the crypto giant wants to wrap up this fundraise by the end of 2024.

According to U.Today’s report, Kraken had planned to become public through a SPAC merger by the end of 2022. This route was intended to mimic the successful IPO of rival crypto exchange Coinbase on the Nasdaq stock exchange in April 2021.

Kraken’s IPO was delayed in November 2022 due to a significant market slump. The value of Bitcoin plummeted to $16,000 amidst the FTX crisis, which caused turmoil throughout the cryptocurrency sector.

In March, Bitcoin achieved its peak price of $73,737. As a result of the booming cryptocurrency market, it’s projected that Kraken will earn approximately $2 billion in revenues this year, based on Bloomberg’s analysis.

Last year, the U.S. Securities and Exchange Commission filed a lawsuit against Kraken over allegations that the company was functioning as an unregistered securities exchange. This legal action added complexity to Kraken’s IPO plans.

In February, Kraken filed to dismiss the SEC’s lawsuit against them, repeating points made by other troubled crypto firms. They argue that most cryptocurrencies should not be classified as securities based on previous reasoning. The exchange further alleges that the SEC is attempting to broaden its regulatory authority.

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2024-06-06 23:21