Bloomberg announced on Thursday that Kraken, a cryptocurrency exchange headquartered in the United States, is contemplating securing a final funding round exceeding $100 million in anticipation of a potential initial public offering (IPO). This strategic decision reflects the renewed vigor in the digital asset market, attracting interested investors and indicating a rebounding industry.
Regulations Are Tough as Kraken Gets Ready for an IPO
By the end of the year, Kraken hopes to finish this funding and take advantage of the favorable market conditions to get ready for the IPO. In order to facilitate a successful IPO as soon as next year, the exchange is also looking for a "marquee" company to join its board.
According to reports, Kraken has been talking about going public at least since 2021. Kraken declined to comment on the intentions for the IPO or funding at the time of publication. But the business reiterated its dedication to accelerating the adoption of cryptocurrencies worldwide.
"We constantly look for new and innovative ways to advance Kraken's mission, which is to hasten the adoption of cryptocurrency worldwide. We're still totally committed to making this investment," it said.
In spite of its intentions to go public, Kraken has encountered notable regulatory hurdles in recent years, including a prominent case involving the US Securities and Exchange Commission (SEC). In 2023, the company reached a settlement over charges related to its staking services, agreeing to pay a $30 million fine and halt these services in the US.
This year, Kraken faces a fresh case with the SEC, which alleges the operation of an unregistered securities broker-dealer, clearing agency, and exchange.
These allegations echo previous charges brought against another US-based crypto exchange, Coinbase. Nevertheless, Kraken is currently challenging the new accusations from the SEC.
The potential of a Kraken IPO has stirred considerable excitement within the crypto community. Observers speculate that a successful IPO could signal a positive shift in the regulatory landscape for digital assets.
Leigh Drogen, general partner at investment firm Starkiller Cap, suggested, "If VCs are willing to finance Kraken here assuming an IPO, they must anticipate a significant change in crypto regulatory issues compared to the Coinbase lawsuit."
Renowned crypto trader Satoshi Flipper also noted that Kraken's IPO timing might resemble that of Coinbase's in 2021, possibly indicating a market cycle peak.
June 2024, Cryptoniteuae