Kraken Is Targeting An IPO Next Year: Report

Kraken, one of the oldest and largest cryptocurrency exchanges in the United States, is organizing a major funding round ahead of a potential initial public offering next year, according to a new report from Bloomberg.

The sources contacted by the platform say that the exchange likely aims to raise $100 million before this move.

Kraken to go public?

If Kraken goes ahead, it will become the second publicly traded cryptocurrency exchange in the world after Coinbase, its biggest competitor.

the Supposed plans It is a response to investor inquiries about the issue fueled by the cryptocurrency market's rise in recent months, which has led to increased trading volumes from which exchanges like Kraken generate profits.

Kraken will raise money in a “pre-IPO round” with the goal of completing it by the end of the year, two of the people contacted said.

The IPO could be completed as soon as next year, after Kraken is able to find a “large” company to join its board, the people said. One person said that only verbal discussions took place regarding conditions and evaluations, without any formal documentation.

“We are always exploring strategic paths towards Kraken’s mission: accelerating the global adoption of cryptocurrencies,” Kraken said, declining to comment specifically on fundraising or IPO matters. “We remain fully focused on investing in this goal.”

Public stock and cryptocurrency trading platform Robinhood said Thursday it will acquire cryptocurrency exchange Bitstamp. Earlier this year, stablecoin issuer Circle also announced plans to go public.

Mature cryptocurrency market

Kraken's parent company, Payward, was founded in 2011. While the exchange had intended to go public for years, a combination of a volatile downturn in the cryptocurrency market and regulatory issues continued to thwart its efforts.

As of today, momentum is shifting on both fronts. Bitcoin is now seeing a new wave of demand from Wall Street, where experts believe tens of billions of dollars have yet to go into newly launched ETF products.

At the same time, policymakers are beginning to open up to cryptocurrencies, and are pushing forward legislation to create legal clarity for the industry. Last month, the House of Representatives passed sweeping legislation to clarify which crypto assets are considered commodities versus securities, and how cryptocurrency exchanges can properly register with regulators.

Kraken has had its share of troubles with the SEC already, paying a $30 million fine last year for failing to register its stake as a service product. It now faces a longer lawsuit for allegedly listing dozens of unregistered securities on its platform, which it is fighting in court.