In the wake of a burgeoning cryptocurrency market, Kraken, a renowned crypto exchange, is purportedly mulling over a significant pre-IPO funding round.

According to Bloomberg, the exchange has piqued the interest of prospective investors, inciting deliberations about a substantial funding round before its anticipated initial public offering (IPO).

Crucial Highlights:

• Kraken is contemplating securing over $100 million in a pre-IPO financing round.
• The exchange has harbored aspirations of an IPO since at least 2021.
• Kraken is on the lookout for a “marquee” entity to join its board, aiming to fortify its IPO prospects by next year.
• The exchange is projected to amass between $1 billion and $2 billion in revenue this year.
• Sources suggest Kraken aims to procure the funds by the year’s end, setting the stage for the pre-IPO round ahead of the public offering.

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Kraken’s Earlier Public Debut Ambitions

Kraken’s previous intentions of going public were thwarted by the volatile nature of crypto prices and stringent regulatory obstacles. The exchange had also resolved a legal matter with the U.S. Securities and Exchange Commission (SEC) last year.

The rekindled enthusiasm for Kraken’s IPO surfaces amid a backdrop of escalating cryptocurrency valuations and a seemingly evolving regulatory milieu. This development also coincides with a more crypto-friendly political environment.

Kraken is actively seeking a high-profile firm to bolster its board, a strategic move aimed at ensuring a triumphant IPO, potentially as soon as next year.

Bloomberg analysts project that Kraken will generate substantial revenue this year, with estimates oscillating between $1 billion and $2 billion.