Kraken, a San Francisco based virtual currency exchange has raised around $13 million in investments by an online organized fundraising program named Bank To The Future (BF). This is noted to be the largest financial crowdfunding investment round that Kraken’s BF blue is to manage. It has received the investments from 2,263 various investors.
As the report by Coindesk, the U.S. based crypto exchange trying to raise funds to upsurge the valuation of ‘Kraken’ more as a company and they were aiming to rise past $4 billion marks. Now with the help of raised funds, crypto exchange will use them to make new purchases and they will also move towards financing new initiatives to expand the business roots of exchange.
The Kraken’s management team has already made some important acquirement such as $100 million procurement in Crypto Facilities in the U.K. based firm in February 2019, a well-known derivatives trading and futures stage. The exchange made another procurement in CryptoWatch, a financial data, and trading stage.
An investor of BF has also given a statement related to investing, “Your $1K investment bought you about 48 future shares (from 201.612.210 in total). If Kraken is really worth $4bn, in the end, you own 0,00002380808% of this pie. And that’s about the sum that you invested. But as you are in the “preferred share class” you get your investment back even if Kraken sells only for $112 million. Only if Kraken sells for more than 4bn we will make money.”
Kraken exemplifies itself as “the only regulated spot and futures crypto exchange with over $85bn in trading volume in 2018 alone.” They also want to launch “additional financial services and products for the blockchain & crypto space.”
The co-founder of the BF, Simon Dixon stated that the exchange required the funding to reach a $4billion valuation, it was reported in CoinDesk. The investors of the exchange wanting to see the breakdown of the valuation supposedly required to sign on the nondisclosure agreement. The exchange received the funding in the form of ‘Special Purpose Vehicle’ and that is why the investors to fund for the Kraken will act as an individual capital investor and not as a crypto exchange’s shareholder. As per the level, the investment is ‘highly speculative and illiquid’ and is related to a ‘considerable amount of risk’.