News
Kraken considers $100 million funding round ahead of possible IPO
Cryptocurrency exchange Kraken It is reportedly considering seeking more than $100 million in a final funding round before launching a possible initial public offering (IPO).
The company has received inquiries from potential investors amid the current rally in the digital asset market, Bloomberg reported Thursday (June 6), citing anonymous sources.
While declining to comment specifically on a potential fundraising or IPO, Kraken said in the report: “We are always exploring strategic paths towards Kraken’s mission: accelerating the global adoption of cryptocurrencies. We remain fully focused on investing in this goal.”
Anonymous sources told Bloomberg that the pre-IPO financing round could be completed by the end of 2024 and that the IPO could be launched as early as 2025, according to the report.
Kraken is expected to have revenues of between $1 billion and $2 billion this year, amid a recovering cryptocurrency market, the report said.
In recent months the company has expanded its offering.
Kraken has acquired TradeStation Crypto, the digital resources unit of TradeStation Groupin April, saying it plans to expand its regulatory licensing in the United States.
“The transaction is part of our efforts to accelerate our presence in the United States and will unlock further growth and new product opportunities for Kraken in the United States,” a Kraken spokesperson said at the time.
TradeStation Crypto has money transmitter and other regulatory licenses in many US states.
In February, Kraken introduced a new solution for businesses looking to gain exposure cryptocurrency.
Dubbed Kraken International, the brand aims to be a one-stop shop for Kraken’s existing products and services for institutions, asset managers, hedge funds and high-net-worth individuals.
“We have been the leading cryptocurrency exchange for over a decade, and through Kraken International, we will offer the same deep expertise and cutting-edge technology to drive trading excellence for institutions,” CEO of Kraken David Ripley he said in a press release announcing the brand’s launch.
In another recent development in this space, Robinhood Markets said Thursday that it is set to acquire cryptocurrency exchange Bitstamp for $200 million in an effort to accelerate Robinhood Crypto’s expansion around the world.
Bitstamp holds more than 50 active licenses and registrations globally.