Cryptocurrency exchange Kraken intends to raise roughly $100 million ahead of its initial public offering (IPO), according to a recent report by Bloomberg that cites sources familiar with the matter.
The report says that the crypto giant wants to wrap up this fundraise by the end of 2024.
As reported by U.Today, Kraken initially intended to go public via a SPAC merger back in 2022. It was supposed to follow in the footsteps of rival crypto exchange Coinbase, whose stock made its debut on the Nasdaq stock exchange in April 2021 to much fanfare.
However, Kraken ended up postponing its IPO due to a strong market downturn. In November 2022, the price of Bitcoin crashed all the way to $16,000 during the unfolding FTX crisis that sent shockwaves across the entire crypto market.
Yuri MolchanIn March, Bitcoin ended up reaching its current all-time high of $73,737. Due to the crypto market, Kraken is expected to generate as much as $2 billion in revenue this year, according to a report by Bloomberg.
Kraken's IPO plans were also complicated by the U.S. Securities and Exchange Commission taking the company to court last year. Kraken has been accused of operating as an unregistered securities exchange by the regulator.
Gamza KhanzadaevIn February, Kraken filed to dismiss the SEC lawsuit, rehashing previous arguments used by embattled crypto companies to make a case that most cryptocurrencies are not securities. The exchange has also accused the formidable regulator of trying to expand its jurisdiction.
Vladislav Sopov
Dan Burgin
U.Today Editorial Team