Kraken, a leading crypto exchange, is preparing for a 2025 IPO by raising $100 million in a pre-IPO funding round. This move comes as investor interest in digital assets rises due to increased crypto valuations and regulatory shifts.
In a move to capitalize on the growing digital asset market, cryptocurrency exchange Kraken is planning an initial public offering (IPO) next year. The San Francisco-based company aims to raise $100 million in a pre-IPO funding round to bolster its financial position and enhance its board for better IPO prospects.
One of the people said that the fundraising should be wrapped up by the end of the year. Kraken, which is part of Payward, was set up in San Francisco in 2011.
Kraken noted in a statement that they're always looking for ways to help the global adoption of crypto. They didn't comment on fundraising or an IPO, but they said they're still "focused on investing in this goal", Coincu reported.
Kraken's IPO journey has not been without challenges. The company has faced regulatory hurdles, including contentious interactions with the U.S. Securities and Exchange Commission (SEC). Last year, Kraken settled one case with the SEC but is still contesting allegations of operating as an unregistered securities broker, dealer, clearing agency, and exchange.
Despite these challenges, Kraken remains committed to its goal of accelerating global crypto adoption.
To improve its IPO prospects, Kraken is reportedly looking to add a high-profile company to its board. Discussions have been primarily verbal, with terms and valuations still being negotiated. This move is seen as part of a broader strategy to enhance the company's public offering potential.
The broader cryptocurrency sector is also drawing significant attention from investors and policymakers. Recent developments include Robinhood's plans to acquire Bitstamp, another major crypto exchange. Additionally, the SEC has shown a more favorable stance towards crypto, approving exchange-traded funds (ETFs) that invest in Bitcoin and taking steps towards approving similar funds for Ether.
See also: Start of EU elections puts crypto regulation issues out of sight
