Kraken reportedly plans to raise $100 million in a final round of funding by the end of the year, before a possible initial public offering in 2025, Bloomberg News reported. June the 6thciting people familiar with the matter.
The report states that Kraken is currently looking for a major company to join the board to help organize the IPO. However, discussions with companies only involve verbal exchanges of conditions and valuations without formal documentation.
Kraken did not confirm the plan, telling Bloomberg only that it is “fully focused on investing” in its goal to “accelerate the global adoption of crypto.”
Previous IPO Rumors
At least rumors of a Kraken IPO have been circulating ever since February 2021when Bloomberg reported that the company could go public at a $10 billion valuation.
In March, Kraken co-founder and then-CEO Jesse Powell confirmed that the company was considering an IPO, calling $10 billion a “low valuation.” He expected an IPO in 2022, but stressed that such an offering was not guaranteed.
The IPO only came about when Powell announced plans to step down as CEO and become chairman at the end of 2022, a transition that was completed in April 2023.
In November 2023New CEO Dave Ripley declined to comment on specific IPO plans but said the company was seeking both private and public financing.
Data from Crunchbase indicates that the company has raised more than $30 million in more than 20 funding rounds.
SEC has sued Kraken
Kraken would have to register its IPO with the SEC, which is currently embroiled in a legal battle with the exchange.
The SEC filed a lawsuit against Kraken in November 2023, alleging that the exchange operated as an unregistered securities exchange, broker, dealer and clearing agency, among other things.
Kraken has chosen not to settle and is fighting the lawsuit in court. It is unclear what impact the lawsuit could have on a future Kraken IPO.