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The leading US cryptocurrency exchange wants to raise $100 million before its IPO
Alex Dovbnja
Cryptocurrency exchange Kraken is expected to get a pre-IPO raise in the range of $100 million
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Cryptocurrency exchange Kraken plans to raise around $100 million ahead of its initial public offering (IPO), according to a recent Bloomberg report citing sources familiar with the matter.
The report states that the cryptocurrency giant wants to conclude this fundraising by the end of 2024.
AS reported by U.TodayKraken initially intended to go public via a SPAC merger in 2022. It was expected to follow in the footsteps of rival cryptocurrency exchange Coinbase, whose shares made their debut on the Nasdaq exchange in April 2021 to much fanfare.
However, Kraken ended up postponing its IPO due to a sharp market downturn. In November 2022, the price of Bitcoin plummeted to as low as $16,000 amid the ongoing FTX crisis which sent shockwaves through the entire cryptocurrency market.
In March, Bitcoin reached its current all-time high of $73,737. According to a Bloomberg report, Kraken will generate up to $2 billion in revenue from the cryptocurrency market this year.
Kraken’s IPO plans were also complicated by the fact that the U.S. Securities and Exchange Commission took the company to court last year. Kraken has been accused by the regulator of operating as an unregistered stock exchange.
In February, Kraken archived to dismiss the SEC’s lawsuit, repurposing previous arguments used by embattled cryptocurrency companies to argue that most cryptocurrencies are not securities. The exchange also accused the formidable regulator of trying to expand its jurisdiction.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.