Kraken hopes to raise $100 million in preparation for its initial public offering
According to Bloomberg, Kraken is allegedly thinking of doing an additional investment round before launching its initial public offering (IPO). With bitcoin values surging and reaching record highs of nearly $73,000, the exchange is thinking of raising $100 million in the latest investment round.
During the recent surge in the cryptocurrency market, the exchange got questions from possible investors, sparking talks about a pre-IPO round.
Plans For Kraken’s IPO And Regulatory Obstacles
The exchange has been thinking about an IPO since 2021 and has previously considered going public. However, prior cryptocurrency price volatility and regulatory issues had an impact on company ambitions.
The SEC has imposed regulatory obstacles on Kraken because of its staking feature, and once FTX failed, the SEC increased its inspection, which was disastrous for Kraken. The exchange reached a $30 million settlement with the regulator in February 2023. It later faced another allegation for selling unregistered securities, much as Coinbase and Binance.
Kraken Is Expected to Raise Money This Year
Kraken is looking for a high-performing business.
welcome to contribute to the success of the IPO, which might take place as early as next year. It is anticipated that the exchange will bring in between $1 billion and $2 billion this year. According to sources, Kraken would probably try to raise the money by the end of the year. Before proceeding with the public offering, this is to wrap up the pre-IPO round.
In April, TradeStation Crypto, the digital assets branch of TradeStation Group, was acquired by Kraken, which resulted in an expansion of its regulatory licencing in the US.
The Benefits of the Crypto Environment
A perceived change in the legal environment and growing cryptocurrency prices have rekindled interest in Kraken’s possible initial public offering (IPO). Especially, the political environment has also started to embrace cryptocurrencies more.
The increase in investor interest in the exchange points to a growing level of acceptance of the cryptocurrency space among investors. Data from The Block indicates that since the start of the year, more than $5.6 billion has been invested in cryptocurrency businesses.
SOURCE : Coinpedia