United States-based cryptocurrency exchange Kraken is reportedly considering a funding round to raise more than $100 million for the firm ahead of a potential initial public offering (IPO).
According to a June 6 Bloomberg report citing people familiar with the matter, Kraken was looking at a funding round expected to raise more than $100 million by 2025. The exchange reportedly said it was “always exploring strategic paths” toward global crypto adoption but did not specifically comment on a potential IPO.
Kraken is facing a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in November 2023. The regulator alleged Kraken operated as an unregistered exchange and “made a business decision to reap hundreds of millions of dollars from investors” in violation of U.S. securities laws.
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In 2021, Coinbase became the first crypto exchange to go public in the United States, listing shares of its stock on the Nasdaq. Before Coinbase’s IPO, Kraken said if it pursued a public offering, it would do so through a direct listing and not a special-purpose acquisition company.
Even facing scrutiny from the SEC, stock trading app Robinhood announced plans to acquire crypto exchange Bitstamp in a $200-million deal. If regulators approve the agreement, it could be finalized in the first half of 2025.
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