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- Kraken, a leading cryptocurrency exchange, has decided to go through an IPO in 2022.
- This move is ostensible to rival Coinbase’s very own IPO release this month.
- However, the CEO feels that the company needs to be better standing before an IPO listing.
April 14 will be a memorable day for crypto enthusiasts as Coinbase, a renowned cryptocurrency exchange firm, will be publicly listed on the NASDAQ exchange. This move is of immense significance as America’s largest crypto exchange offering an IPO signifies crypto’s entry into mainstream economics and FinTech systems. Kraken, one of Coinbase’s rivals, has decided to take the same route, albeit a little while later.
Bitcoin’s bullish rally raised ambitions
Tesla’s infusion of $1.5 billion into Bitcoins paved the way for its historic run in the stock markets. Bitcoins, which were trading at a mere $9,000 in December 2021, shot up to a peak of $58,000 in a span of 3 months. This upbeat financial climate surrounding cryptos enabled Kraken to perform very well from a financial perspective. Its first quarterly statements have shown tremendous improvement in the company’s standing, completely surpassing the earlier year’s numbers. CEO and co-founder Jesse Powell attributed the improvement to several institutional investors and a large majority of the excited public who acted as amateur investors.
The firm has also taken a keen interest in non-fungible tokens (NFTs) as its popularity has sky-rocketed in the recent past. Powell also states that the crypto climate is only set to change with the induction of newer tokens and a potentially major upgrade of the Ethereum chain, dubbed Eth2.0, which is touted to be faster and more secure.
Firm too large for a SPAC merger
Earlier, some reports suggested that Kraken may go public via a Special Purpose Acquisition Company (SPAC) created especially to raise capital funds via an IPO. Later, it was deemed impractical as the firm was too large for a SPAC merger. The company now plans to offer an IPO via a direct listing on the NASDAQ sometime next year. To improve the company’s valuation, Kraken has partnered with Fidelity and Tribe Capital which have contributed handsomely to bring Kraken to an estimated $10 billion valuation.
Even as Kraken may still be uncertain about an IPO, the overall crypto climate seems to be thriving for exchanges and other entities.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
