Cryptocurrency Exchange Kraken in Talks for $20 Billion Valuation Ahead of IPO
The cryptocurrency exchange Kraken is currently engaged in advanced discussions with a strategic investor for a new financing round, which is expected to bring its valuation to around $20 billion. The company is reportedly speeding up its capital raising efforts in anticipation of a potential IPO.
Details of the Funding Round
Sources familiar with the situation indicate that the funding round has not yet been finalized and is subject to change based on market conditions. The investment projected for this round is likely to be in the range of $200 million to $300 million. This initiative comes on the heels of Kraken’s recent $500 million fundraising, which valued the company at $15 billion, showcasing a notable rise in the valuations of prominent cryptocurrency firms within private market spaces.
Kraken, founded in 2011 and officially known as Payward Inc., had only raised $27 million in seed funding prior to this year. The latest funding will provide Kraken with the necessary resources to enhance its competitiveness against publicly traded rivals, such as Coinbase, and various other global exchanges. Additionally, the company has recently started offering tokenized stocks and exchange-traded funds (ETFs).
Industry Trends in Capital Raising
Major players in the cryptocurrency industry are intensifying their capital raising activities amidst a more lenient regulatory environment and a rise in institutional adoption in the US. Numerous digital asset companies are turning towards private and public markets to broaden their product portfolios, obtain required licenses, and potentially initiate IPOs.
Kraken has reportedly enlisted the services of Morgan Stanley and Goldman Sachs as it gears up for its upcoming IPO, which could be slated for the first quarter of next year.
Simultaneously, Tether, another major player in the industry, is engaged in discussions with investors, including ARK Investment Management, to raise between $15 billion and $20 billion. This funding could elevate Tether’s valuation to $500 billion. Other companies like Circle, Gemini, and Bullish have successfully gone public this year.
This is not investment advice!
