Kraken is reportedly considering a final funding round ahead of its Initial Public Offering (IPO) as reported by Bloomberg. The exchange is considering raising $100 million in the new funding round, which comes amidst the crypto prices rallying, with BTC hitting all-time highs of over $73,000.
The exchange received inquiries from potential investors during the ongoing crypto market rally, which initiated the discussions of a pre-IPO round.
Kraken’s IPO Plans And Regulatory Hurdles
The exchange had earlier ideas of going public and has been considering an IPO since 2021. However, its plans were affected by previous volatility in crypto prices and regulatory challenges.
Kraken has faced regulatory hurdles from the SEC over its staking feature, and following the collapse of FTX, the SEC intensified scrutiny, leading to a disaster for Kraken. In February 2023, the exchange had settled with the regulator for $30 million. Later, it faced another charge similar to Binance and Coinbase for offering unregistered securities.
Kraken Likely to Raise Funds By This Year
Kraken is seeking a high-profile company onboard to help ensure a successful IPO, which could occur as early as next year. The exchange is expected to generate $1 billion to $2 billion in revenue this year. Sources indicate that Kraken would likely seek to raise the funds by year-end. This is to complete the pre-IPO round before moving forward with the public offering.
In April, Kraken announced that it was expanding its regulatory licencing in the United States by acquiring TradeStation Crypto, the digital assets division of TradeStation Group.
The Advantageous Crypto Climate
The renewed interest in Kraken’s potential IPO is amidst rising crypto prices and a perceived shift in the regulatory landscape. Notably, the political climate has also become more favorable towards cryptocurrencies.
The spike in investor interest in the exchange suggests that investors are warming up to the crypto industry. According to The Block’s data, more than $5.6 billion has been poured into crypto companies since the beginning of this year.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed