Kraken, a US-based cryptocurrency exchange, is reportedly contemplating a funding round to secure over $100 million for the company in anticipation of a potential initial public offering (IPO). According to sources familiar with the matter cited in a Bloomberg report on June 6, Kraken aims to raise the funds by 2025. While the exchange has acknowledged its continuous exploration of strategic paths towards global crypto adoption, it has not directly commented on the possibility of an IPO.
Kraken currently faces legal challenges, including a civil lawsuit filed by the US Securities and Exchange Commission (SEC) in November 2023. The SEC alleges that Kraken operated as an unregistered exchange and violated US securities laws by profiting from investors.
Coinbase set a precedent in 2021 by becoming the first US-based cryptocurrency exchange to go public, listing its shares on the Nasdaq. Kraken had previously stated its intention to pursue a direct listing rather than use a special-purpose acquisition company for its potential public offering.
Despite regulatory scrutiny, Robinhood, a stock trading app, announced its plans to acquire Bitstamp, a crypto exchange, in a $200 million deal. If approved by regulators, the acquisition is expected to be finalized in the first half of 2025.
