Kraken Prepares for IPO in 2025, Reportedly Raising Over $100M in Funding

June 9, 2024

Kraken, one of the leading cryptocurrency exchanges, is reportedly making significant strides toward becoming a publicly traded company. According to a recent report, Kraken is seeking to raise over $100 million in a funding round expected to conclude by the end of this year.

This move is a crucial step in Kraken’s journey toward an Initial Public Offering (IPO) in 2025.

Kraken, one of the oldest cryptocurrency exchanges, considered raising a final funding round ahead of a possible initial public offering after receiving inquiries from potential investors during the current digital-asset market rally, Bloomberg reported, citing “people familiar with the matter” as the source of information.

The publication’s source further shared that the crypto exchange’s recent performance, including being on the verge of all-time highs again, as well as the perceived shift in U.S. regulatory pushback against cryptocurrencies, brought a renewed interest from investors and revived talks of going public.

The first reports about Kraken eyeing an IPO came out in early 2021. Specifically, in March 2021, Kraken’s CEO Jesse Powell mentioned in an interview with CNBC that the company was considering going public through a direct listing in 2022. This marked the beginning of public discussions about Kraken’s potential IPO plans.

For years, speculation about Kraken’s IPO ambitions circulated, but the firm had been preoccupied with regulatory hurdles. Last year, the U.S. Securities and Exchange Commission (SEC) accused Kraken of running an unregistered platform and improperly handling customer funds. Just last week, Kraken faced additional regulatory scrutiny from the SEC, highlighting the ongoing challenges centralized exchanges faced in a rapidly evolving regulatory landscape.

The decision to raise over $100 million was a pivotal move for Kraken, providing the necessary capital to enhance its operations, strengthen compliance measures, and meet the rigorous requirements for going public. This significant investment underscored the substantial resources needed to upgrade infrastructure, adhere to regulatory standards, and transition smoothly to a publicly traded company.

For Kraken, an IPO would signify a leap toward greater transparency, credibility, and stability. Going public would have offered Kraken access to a wider pool of capital, enabling further innovation and expansion. For Kraken’s users, an IPO could have both positive and negative implications. On the one hand, it could enhance the platform’s credibility and transparency. On the other hand, some users may worry that a publicly traded Kraken could prioritize profit over user interests.

Kraken is not the first crypto exchange to explore the public markets. Coinbase, another major U.S.-based exchange, went public in 2021 through a direct listing, achieving a valuation of over $85 billion. Other notable crypto companies, such as Bakkt and Galaxy Digital, have also gone public through mergers with special purpose acquisition companies (SPACs).

The Shib Daily has reached out to Kraken for an official statement on the reported fundraising efforts and potential IPO. This article will be updated as soon as we receive a response from the company.

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