Kraken, one of the leading cryptocurrency exchanges, is aiming to secure $1 billion worth of debt in order to boost its growth, according to a recent report by Bloomberg.
The massive debt raise is expected to happen ahead of the exchange's rumored initial public offering.
In early March, Bloomberg reported that Kraken could be on track to become a public company less than a year from now.
Kraken has reportedly collaborated with JPMorgan and Goldman Sachs in order to raise the debt.
On top of that, the leading global cryptocurrency exchange is planning an equity raise.
Kraken was expected to go public in 2022 via a SPAC merger. Notably, the cryptocurrency trading platform appointed financial services veteran Carrie Dolan as its CFO that year. The move indicates that the exchange is getting serious about its IPO plans. Doland was responsible for managing the IPO of LendingClub Corporation in 2015. Back then, it was one of the biggest internet IPOs of all time in the U.S.
Alex DovbnyaHowever, its IPO plans were then postponed, but the exchange might now go pubic now due to a friendlier regulatory environment.
Coinbase, the leading U.S. exchange, went public back in April 2021 to much fanfare.
Earlier this month, Kraken also agreed to acquire futures broker NinjaTrader for $1.5 billion in order to expand its presence in the traditional finance sector.
Yuri MolchanAs reported by U.Today, the SEC agreed to dismiss its lawsuit against Kraken on March 3 as part of its major push to ease enforcement.
Vladislav Sopov
Dan Burgin