Kraken has reportedly secured $500 million in funding at a valuation of $15 billion, which may bolster its financial standing as speculation grows that the cryptocurrency exchange is gearing up for an initial public offering (IPO). The news, first disclosed by Fortune, cites a source familiar with the negotiations, confirming that Kraken successfully closed this funding round earlier this month.
When approached by Cointelegraph for further details, a Kraken representative opted not to provide any comments. However, the financing and valuation align closely with earlier reports from Cointelegraph in July, which indicated that Kraken was pursuing $500 million at the same $15 billion valuation. This has been largely interpreted as a preparatory step toward an IPO.
Despite not having filed any regulatory documents for a public listing just yet, several actions taken by the company suggest that it is preparing for an IPO. These include enhancing its financial disclosures, a crucial aspect of being publicly traded. Still, the absence of an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) remains a notable gap in the process.
Founded in 2011 and launching its services in 2013, Kraken stands as one of the oldest exchanges in the cryptocurrency sector. It recently recorded approximately $1.9 billion in trading volume within a 24-hour timeframe, placing it among the top 15 crypto exchanges globally, according to CoinMarketCap’s data.
The push for a public offering from Kraken aligns with a broader trend, as several cryptocurrency firms have successfully navigated the waters of public markets recently. Gemini, the exchange established by Cameron and Tyler Winklevoss, saw extraordinary demand during its Nasdaq debut, becoming over 20 times oversubscribed and raising $425 million. Since its public listing earlier this month, Gemini’s market capitalization has surged to more than $2.8 billion.
In June, Circle, the company behind the USD Coin (USDC), also completed a billion-dollar IPO, with its shares skyrocketing by 167% on the first day of trading, leading to a valuation of approximately $31.4 billion. Additionally, Figure Technology Solutions, a blockchain-based lending platform, experienced a successful debut in September, with shares rising over 20%, raising its market cap above $8.4 billion.
Meanwhile, BitGo, a leading cryptocurrency custodian that manages over $90 billion in assets, has taken steps towards going public by filing S-1 registration documents with the SEC, seeking to list its Class A common stock on the New York Stock Exchange.
The current surge in crypto IPOs comes against a backdrop of favorable regulatory developments in the United States, such as the recent passage of the GENIUS stablecoin bill and ongoing progress in legislation concerning market structure and anti-central bank digital currency (CBDC) initiatives. These developments are contributing to a more favorable environment for the digital asset industry.
