Kraken, a long-standing cryptocurrency exchange, is reportedly considering a final round of funding before potentially going public with an initial public offering (IPO) as early as next year. This comes as investors show renewed interest in the digital asset market and as regulatory scrutiny in the United States appears to be easing.
According to sources from Bloomberg, Kraken is looking to raise more than $100 million and is actively seeking a prominent company to join its board in order to strengthen its IPO plans. Initially, CEO Jesse Powell had expressed interest in a direct listing similar to Coinbase's approach, but he has since shifted his focus to a traditional IPO, citing improved prospects. The company has been contemplating going public since 2021.
With cryptocurrency valuations reaching near all-time highs, Kraken's IPO could take advantage of the current market momentum. Circle, the company behind the USDC stablecoin, has also been actively pursuing plans to go public through an IPO. In January 2024, Circle confidentially filed a draft registration statement with the U.S. Securities and Exchange Commission (SEC).
Kraken's decision to pursue an IPO reflects the broader trend of increased investor interest in digital asset firms. As companies in this sector attract renewed attention, the potential for significant capital influx grows. The reported move by Kraken to add a top-tier business to its board and raise substantial funds highlights its strategic approach. Only time will tell if the IPO will come to fruition and if Bloomberg's sources are accurate.
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