Key Takeaways:
- Kraken is planning to raise over $100 million, potentially leading to an IPO by 2023.
- The exchange is facing a civil lawsuit from the SEC for operating as an unregistered exchange and profiting illegally.
- This move follows the trend of other crypto firms like Coinbase going public, with Robinhood also expanding its crypto footprint through the acquisition of Bitstamp.
Kraken, a prominent United States-based cryptocurrency exchange, is reportedly gearing up to initiate a funding round aimed at raising over $100 million, setting the stage for a potential initial public offering (IPO) by 2023.
According to a recent Bloomberg report, Kraken is strategically exploring various pathways to foster global adoption of cryptocurrencies, although specific details regarding its IPO plans remain undisclosed.
Kraken is considering raising a final funding round ahead of a possible IPO https://t.co/8YehASguAu
— Bloomberg Crypto (@crypto) June 6, 2024
Amidst these developments, Kraken faces legal challenges from the U.S. Securities and Exchange Commission (SEC), which filed a civil lawsuit against the exchange in November 2023.
The SEC alleges that Kraken operated as an unregistered exchange and illegally profited by hundreds of millions from investors, in breach of U.S. securities laws.
This move towards a possible IPO mirrors actions by other crypto firms, notably Coinbase, which became the first crypto exchange to go public in the U.S. in 2021.
KRAKEN GOING PUBLIC?
— BSCN (@BSCNews) June 6, 2024
– @krakenfx may raise over $100 million in a final funding round before a potential initial public offering (IPO) next year, per Bloomberg.
– The crypto exchange could complete the funding round by the end of the year, capitalizing on rising investor… https://t.co/Fqlrw7LUbz pic.twitter.com/VyOaFWabpZ
Despite similar regulatory scrutiny, Robinhood is advancing its crypto market presence by acquiring Bitstamp in a significant deal pending regulatory approval.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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