Kraken prepares to raise $100 million ahead of IPO: Report

US-based cryptocurrency exchange Kraken is reportedly considering a funding round to raise more than $100 million for the company ahead of a potential initial public offering (IPO).

Kraken was considering a funding round that would see it raise more than $100 million by 2025, according to a June 6 Bloomberg report citing people familiar with the matter. The exchange reportedly said it was “always exploring a strategic path” toward global cryptocurrency adoption, but that was not the case. Mention the potential IPO specifically.

Kraken is facing a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in November 2023. Regulators alleged that Kraken operated as an unregistered exchange and “made business decisions to extract hundreds of millions of dollars from investors” in violation of U.S. law. Securities law.

Related: Kraken counters SEC’s legal interpretation of dismissal motion

In 2021, Coinbase listed its stock on Nasdaq, becoming the first cryptocurrency exchange to be listed in the United States. Before the Coinbase IPO, Kraken announced that if it pursues an initial public offering, it will do so through a direct listing rather than a special purpose acquisition company.

Despite the SEC’s investigation, stock trading app Robinhood announced plans to acquire cryptocurrency exchange Bitstamp in a deal valued at $200 million. If regulators approve the agreement, it could be finalized in the first half of 2025.

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