Cryptocurrency exchange Kraken intends to raise approximately $100 million ahead of its initial public offering (IPO), according to a recent Bloomberg report citing sources familiar with the matter.
Cryptocurrency exchange Kraken intends to raise approximately $100 million ahead of its initial public offering (IPO), according to a recent Bloomberg report citing sources familiar with the matter.
The report says that the cryptocurrency giant wants to finish this fundraising by the end of 2024.
As reported by U.TodayKraken was initially intended to go public via a SPAC merger in 2022. It was supposed to follow in the footsteps of rival Coinbase, whose shares made their debut on the Nasdaq stock exchange in April 2021 to much fanfare.
However, Kraken ended up postponing its IPO due to a sharp market decline. In November 2022, the price of Bitcoin plummeted to $16,000 during the FTX crisis that unfolded and sent shockwaves throughout the crypto market.
Yuri MolchanIn March, Bitcoin ended up reaching its current all-time high of $73,737. Due to the cryptocurrency market, Kraken is expected to generate up to $2 billion in revenue this year, according to a Bloomberg report.
Kraken’s IPO plans also became complicated when the U.S. Securities and Exchange Commission took the company to court last year. The regulator has accused Kraken of operating as an unregistered stock exchange.
Gamza KhanzadaevIn February, Kraken archived to dismiss the SEC’s lawsuit, repeating previous arguments used by embattled crypto companies to argue that most cryptocurrencies are not securities. The exchange also accused the formidable regulator of trying to expand its jurisdiction.
