Kraken insiders anonymously spoke to Bloomberg, revealing that the leading crypto exchange plans to go public next year through an initial public offering (IPO). It is looking to raise $100 million from investors in pre-IPO investment rounds and is also on the hunt for a ‘marquee’ company on its board for assistance with the IPO.
The exchange has planned for an IPO in previous years. The offering has failed to transpire due to bad market conditions, regulatory tussles, or both. It has been so since 2021 – Kraken teased the idea of going public that year, with Jesse Powell, Kraken’s Co-Founder and then CEO, saying it could happen in 2022. However, he stepped down from his position, and the IPO never occurred.
While rumors of its IPO emerged again in late 2023, market conditions prevented it. At the same time, Kraken was sued by the SEC for selling securities without its approval, a case still going on to this day. This case may make for interesting developments going forward as Kraken must register with the SEC to go public.
Kraken has also faced issues with the SEC previously, settling for $30 million in early 2023. This time, it maintains that it is not guilty, has not settled, and is fighting the case. Nevertheless, the current market climate is favorable for an IPO, considering sky-high asset valuations and user interest in the asset class. Kraken is reported to net $1 billion to $2 billion in revenues this year, making it the perfect time to go public.
Moreover, US lawmakers and regulatory agencies, including the SEC, have favored crypto assets more than ever. Such can be witnessed with the launch of BTC ETFs (exchange-traded funds) earlier this year and the expected approval of other assets. If Kraken wants to go public, this would be the right time.
