Kraken is reportedly planning to boost $100 million by means of a ultimate funding spherical by the tip of the yr earlier than an eventual IPO in 2025, Bloomberg Information reported on June 6, citing folks aware of the matter.
The report mentioned that Kraken is presently searching for a marquee firm to hitch its board to assist set up the IPO. Nevertheless, discussions with firms have solely concerned verbal exchanges of phrases and valuations with out formal documentation.
Kraken didn’t affirm the plan and solely informed Bloomberg that it’s “absolutely targeted on investing” in its aim of “accelerating the worldwide adoption of crypto.
Earlier IPO rumors
Rumors round a Kraken IPO have circulated since a minimum of February 2021, when Bloomberg reported that the agency may go public at a $10 billion valuation.
In March, Kraken’s co-founder and then-CEO Jesse Powell confirmed that the corporate was contemplating an IPO and referred to as $10 billion a “low valuation.” He anticipated a 2022 IPO however emphasised that such an providing was not assured.
The IPO didn’t come to fruition earlier than Powell introduced plans to step down as CEO and turn out to be chairman in late 2022, a transition accomplished in April 2023.
In November 2023, new CEO Dave Ripley declined to touch upon any particular IPO plans however mentioned the corporate sought non-public and public funding alike.
Crunchbase information signifies the agency has raised greater than $30 million in over 20 funding rounds.
SEC has sued Kraken
Kraken would want to register its IPO with the SEC, which is presently embroiled in a authorized tussle with the trade.
The SEC filed a lawsuit in opposition to Kraken in November 2023, alleging that the trade was working as an unregistered securities trade, dealer, seller, and clearing company, amongst different issues.
Kraken has opted to not settle and is combating the lawsuit in courtroom. It’s unclear how the lawsuit may influence any future Kraken IPO.
