Cryptocurrency exchange Kraken has reportedly completed a $500 million funding round at a $15 billion valuation. The raise comes amid growing rumors that the exchange is preparing for an initial public offering (IPO).
The funding round involved participation from several firms and investors, and did not have a lead investor.
Kraken Raised $500M Ahead Of Potential IPO
Kraken has raised $500 million at a $15 billion valuation as speculation about an initial public offering grows. The funding significantly strengthens the exchange’s financial position, and was first reported by a report in Fortune, which cited a source close to the negotiations. The report also stated that the funding round had no lead investor and was closed on Kraken’s terms. Participants in the funding round included venture capital firms, investment managers, and Kraken co-CEO Arjun Sethi, who invested through his Tribe Capital Fund. Sethi joined Kraken as co-CEO after co-founder Jesse Powell stepped down in 2022, following a federal investigation into his role at a Sacramento-based nonprofit.
Powell had named Dave Ripley as his successor after stepping down. However, the exchange announced Sethi’s appointment as co-CEO last year. Sethi is responsible for Kraken’s growth over the past year.
Paperwork Still Pending
Kraken is yet to file any official paperwork for a public listing. However, several of the exchange’s actions are consistent with companies preparing for an IPO. However, it has yet to submit an S-1 registration statement to the United States Securities and Exchange Commission (SEC). The S-1 registration statement is a necessary step before any public offering in the US. Kraken is one of the oldest exchanges in the cryptocurrency market and was launched in 2013. The exchange ranks among the top 15 global cryptocurrency exchanges and processed around $1.9 billion in trading volume, according to data from CoinMarketCap.
Crypto’s IPO Obsession
Kraken’s public offering comes amid a surge of crypto firms becoming public. Gemini, the Winklevoss brothers-founded exchange, recently went public, and was 20 times oversubscribed during its Nasdaq debut. The exchange raised $425 million on its Nasdaq debut, and its market capitalization has ballooned to $2.8 billion since going public. Meanwhile, USDC issuer Circle completed a billion-dollar IPO in June, with its shares surging 167% on opening day. Blockchain-based lender Figure Technology Solutions also registered an impressive debut, with its market capitalization rising above $8 billion since going public.
Crypto custodian BitGo has filed S-1 registration documents with the SEC. The company plans to list its Class A common stock on the New York Stock Exchange.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice
