Kraken cryptocurrency exchange is purportedly contemplating a funding round to generate over $100 million for the company in anticipation of a potential initial public offering (IPO).
Kraken was contemplating a funding round anticipated to generate over $100 million by 2025, according to a Bloomberg report on June 6 that cited individuals with knowledge of the situation.
The exchange reportedly stated that it was “consistently investigating strategic pathways” to promote global crypto adoption, but it did not provide any specific information regarding a prospective IPO.
In November 2023, the U.S. Securities and Exchange Commission (SEC) filed a civil lawsuit against Kraken. The regulator alleges that Kraken violated U.S. securities laws by operating as an unregistered exchange and “making a business decision to reap hundreds of millions of dollars from investors.”
In 2021, Coinbase became the first cryptocurrency exchange to list its stock on the Nasdaq and go public in the United States. Kraken had previously stated that it would pursue a public offering through a direct listing rather than a special-purpose acquisition company if it did so before Coinbase’s IPO.
Despite the SEC’s scrutiny, Robinhood, a stock trading app, has announced its intention to acquire Bitstamp, a crypto exchange, in a $200 million transaction. The agreement could be finalized in the first half 2025 if regulators sanction it.
