Kraken is reportedly seeking to raise approximately $100 million in preparation for an initial public offering (IPO), according to sources cited by Bloomberg. Insiders suggest the funding round could be finalized by the end of the year, positioning Kraken for a significant financial move.
Being a major participant in the cryptocurrency space, Kraken has a long history of advancing the industry. However, its most recent fundraising attempts have been clouded by unresolved legal difficulties. Kraken was sued by the U.S. Securities and Exchange Commission (SEC) last year on charges that it ran an unregistered securities exchange and mixed customer assets with company money. Kraken is vigorously defending itself against the charges and has refuted these claims. The SEC is accusing competitors in the same business, such as Coinbase, so the corporation is not alone in this legal dispute.
When approached by crypto.news for a comment, a Kraken spokesperson declined to provide any details regarding the fundraising efforts.
The regulatory landscape in the U.S. is experiencing shifts, particularly as the country approaches the winter presidential elections. This changing environment has prompted several American-based crypto companies to consider IPOs. For instance, in January, stablecoin issuer Circle announced its IPO plans following a previously unsuccessful attempt through a special purpose acquisition company (SPAC) agreement.