PYMNTS MonitorEdge May 2024

Kraken Considering $100 Million Funding Round Before Possible IPO

Cryptocurrency exchange Kraken is reportedly considering seeking more than $100 million in a final funding round before launching a possible initial public offering (IPO).

The company has received inquiries from potential investors amid the current rally in the digital asset market, Bloomberg reported Thursday (June 6), citing unnamed sources.

While declining to comment specifically on a potential fundraise or IPO, Kraken said in the report: “We are always exploring strategic paths toward Kraken’s Mission: accelerating the global adoption of crypto. We remain fully focused on investing in this goal.”

The unnamed sources told Bloomberg that the pre-IPO funding round may be completed by the end of 2024, and the IPO may be launched as early as 2025, according to the report.

Kraken is expected to have revenue of between $1 billion and $2 billion this year amid the crypto market’s rally, the report said.

The company has been expanding its offerings in recent months.

Kraken acquired TradeStation Crypto, the digital assets unit of TradeStation Group, in April, saying it aims to expand its regulatory licensing in the United States.

“The transaction is part of our efforts to accelerate our U.S. presence and will unlock further growth and new product opportunities for Kraken in the U.S.,” a Kraken spokesperson said at the time.

TradeStation Crypto has money transmitter and other regulatory licenses in many U.S. states.

In February, Kraken introduced a new solution for firms looking to gain exposure to cryptocurrency.

Dubbed Kraken International, the brand aims to be a one-stop shop for Kraken’s existing products and services for institutions, asset managers, hedge funds and high net-worth individuals.

“We’ve been the leading crypto exchange for more than a decade and through Kraken International, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions,” Kraken CEO David Ripley said in a press release announcing the launch of the brand.

In another recent development in this space, Robinhood Markets said Thursday that it is set to acquire cryptocurrency exchange Bitstamp for $200 million in an effort to accelerate Robinhood Crypto’s expansion worldwide.

Bitstamp holds more than 50 active licenses and registrations globally.