- Kraken is preparing for a potential IPO.
- The exchange has long aspired to go public; however, dwindling market conditions have often derailed its ambitions.
- With market conditions improving, Kraken appears confident about its goal.
The crypto market is finally catching its breath after weathering a two-year storm filled with contagion events, market crashes, and regulatory battles. Now, with market conditions turning and assets flirting with new all-time highs, veterans like Kraken—one of the industry’s oldest exchanges—are seizing the moment to achieve their goals.
Its latest move? Eyeing a potential initial public offering (IPO) as soon as next year.
Kraken Prepares for an IPO
With the crypto industry experiencing a major shift in market conditions, regulatory approaches, and institutional interest this year, Kraken has reignited its passion for going public—a vision it has pursued since at least 2021. Insiders told Bloomberg that the exchange is looking to raise at least $100 million.
Sponsored
Though the news has yet to be public, Kraken is likely to raise the money in a pre-IPO round set to be completed by year-end. DailyCoin reached out to Kraken for confirmation but has not received a response.
“We are always exploring strategic paths toward Kraken’s Mission: accelerating the global adoption of crypto,” Kraken said Thursday in a statement. “We remain fully focused on investing in this goal.”
Spokespeople told the publication that the exchange is seeking a high-profile company to join its board to help ensure a successful IPO as early as next year. So far, discussions have been verbal, with no formal documentation yet.
Kraken’s goal of going public has been a long time coming.
Kraken’s Long Time Coming
The crypto exchange has frequently talked about going public, but its ambitions have often been thwarted by unexpected events such as market crashes and regulatory turmoil.
Sponsored
Though Kraken has previously settled a case with the SEC, it has another ongoing case with the regulator.
The agency accuses Kraken of operating as an unregistered securities broker-dealer, clearing agency, and exchange—charges similar to those filed against Coinbase, the largest US crypto exchange. Nevertheless, Kraken disputed these allegations, claiming that the SEC’s case lacked merit and misinterpreted core legal concepts.
With regulators, lawmakers, and politicians in the US appearing more crypto-friendly than in previous years, especially with the asset class emerging as a key issue for US voters, Kraken’s path toward an IPO could be clear.
Should Kraken receive approval for its IPO, it will become the second crypto exchange listed on stock exchanges after Coinbase.
On the Flipside
- Coinbase bypassed the traditional IPO route, listing its shares directly on the Nasdaq, eliminating the need for Wall Street investment banks to set the pricing.
- Kraken is projected to generate $1 billion to $2 billion in revenue this year, while Coinbase is expected to reach a significantly higher revenue of $6 billion.
Why This Matters
Kraken has long aspired to go public, but unforeseen events have often derailed its ambitions. An IPO could be a game-changer, allowing Kraken to legitimize itself further and tap into a vast new market and pool of investors. Going public could unlock significant growth opportunities and solidify Kraken’s position as a leading player in the crypto industry.
Read more about Azarus and Stream’s partnership:
Azarus Joins Stream to Bring Quality Content to the Metaverse
Ark Invest drops out of the ETH ETF race:
ARK Invest Out of ETH ETF Race, Ends Partnership with 21Shares
