Kraken before new financing round boost and IPO planning

The crypto exchange Kraken is on the verge of raising new funds that could catapult its valuation to around 20 billion US dollars. According to insiders who wish to remain unnamed, the potential investment from a strategic investor ranges between 200 and 300 million US dollars. While the details still depend on market conditions, this would be a considerable leap from the recent financing round of 500 million US dollars at a valuation of 15 billion US dollars. Founded in 2011 and based in Cheyenne, Wyoming, the exchange officially operates under the name Payward Inc. and has so far raised only 27 million US dollars in primary capital. With the new financial injection, Kraken aims to strengthen its position against rivals like the publicly traded Coinbase Global and other exchanges operating worldwide. Recently, Kraken has also introduced trading with tokenized stocks and exchange-traded funds, viewed as a strategic expansion ahead of the planned public offering. In light of the growing acceptance of cryptocurrencies and a more relaxed regulatory stance in the US, many large crypto firms are ramping up their funding efforts. This includes efforts to expand product lines and secure necessary licenses for potential public offerings. Kraken has already selected the investment banks Morgan Stanley and Goldman Sachs for the planned Initial Public Offering next year. These institutions declined to comment on the plans. According to a Bloomberg report, Kraken plans to go public as early as the first quarter of next year. In parallel, Tether Holdings, the world's largest issuer of stablecoins, is in negotiations with investors like ARK Investment Management to secure billions in new company valuations. Other prominent companies, such as Circle Internet, Gemini Space Station, and Bullish, have meanwhile made their way to the stock market this year.