Kraken, One of the Most Prominent Crypto Exchanges in the United States, Is Preparing for the Next Big Step

With an ambitious plan to raise around 100 million US Dollars (around Rp1.6 trillion) ahead of their initial public offering (IPO), Kraken shows the courage and long-term vision

Crypto exchange Kraken is reportedly planning to raise about $100 million ahead of its initial public offering (IPO), according to a Bloomberg report.

The fundraising effort is part of Kraken’s broader plan to go public before the end of 2024, the report said, citing people familiar with the matter.

Kraken had planned to go public in 2022 via a merger with a special purpose acquisition company (SPAC), following in the footsteps of Coinbase, which went public on the Nasdaq in April 2021.

However, those plans were put on hold amid a downturn in markets, including the collapse of crypto exchange FTX in November, which saw the price of Bitcoin (BTC) drop to around $16,000.

But improving crypto market conditions in March, with Bitcoin hitting an all-time high of $73,737, could offer fresh hope for Kraken, which is reportedly expecting to generate $2 billion in revenue this year.

Kraken’s IPO plans come amid legal challenges, with the U.S. Securities and Exchange Commission having filed a lawsuit against Kraken last year, alleging that the exchange operated an unregistered securities exchange.

Kraken filed a motion to dismiss the SEC’s lawsuit in February, arguing that the majority of cryptocurrencies are not securities and accusing the regulator of attempting to overreach its jurisdiction.

Despite the legal challenges and the ambitious fundraising plans, Kraken is said to be optimistic and remains committed to continuing to grow its business.

The move highlights the resilience and adaptability of the crypto industry, which continues to seek new avenues for growth amid challenges and regulatory uncertainty.