Kraken Aims to Raise More Than $100 Million Before IPO, Reports Bloomberg
In a move to strengthen its financial standing ahead of a potential initial public offering (IPO), Kraken, a major player in the cryptocurrency exchange market, is looking to secure over $100 million in its final round of fundraising.
Sources familiar with the matter revealed to Bloomberg that Kraken is capitalizing on the current market upswing by seeking pre-IPO funding. The company is targeting a sum exceeding $100 million and aims to complete the fundraising by the end of the year.
While Kraken has not officially commented on the fundraising or IPO plans, the company did express its commitment to advancing the global adoption of crypto. Kraken is actively exploring strategic avenues to achieve its mission, indicating a strong focus on investing in this goal.
As part of its preparation for a successful IPO, Kraken is in talks with a potential high-profile company to join its board as a key partner. Discussions have been primarily verbal, focusing on terms and valuations, with no formal agreements in place at this stage.
With the cryptocurrency market surging to new highs, there has been a shift in regulatory attitudes towards digital assets in the U.S. This shift has reignited investor interest in companies within the sector, leading to discussions around going public.
Kraken’s plans to go public have faced setbacks in the past due to market downturns and regulatory challenges, including disputes with the Securities and Exchange Commission. While Kraken has resolved one case with the SEC, it remains embroiled in ongoing legal proceedings with the agency.
In a separate development, Robinhood, a major player in the financial services industry, recently announced its acquisition of Bitstamp in a $200 million all-cash deal. This acquisition will enable Robinhood Crypto to expand globally by leveraging Bitstamp’s licenses and registrations, enhancing its presence in the EU, UK, US, and Asia and attracting a broader customer base.
Bitstamp CEO JB Graftieaux highlighted the benefits of bringing Bitstamp’s platform and expertise into Robinhood’s ecosystem, emphasizing an improved trading experience with a strong focus on compliance, security, and customer service.