Kraken Could Go Live On the Stock Market Next Year: Report

Cryptocurrency exchange, Kraken is considering going public in 2022. There could be a traditional initial public offering (IPO) or a merger with a blank check acquisition company as revealed by Fox Business reporter, Charles Gasparino.

Kraken to Go Public Through a SPAC tie-up or IPO

The cryptocurrency exchange is planning to go public possibly through a SPAC tie-up or IPO.

In a Special Purpose Acquisition Company (SPAC), Kraken would create a company solely to raise capital through an IPO. However, in an IPO, Kraken would sell shares of its company.

Fox Business reporter, Charles Gasparino added that Kraken’s IPO could take place sometime next year. He further included that various members of the crypto industry expect a raft of crypto SPACs this summer.

Kraken later clarified that the exchange might consider a public offering next year. The exchange is only considering a direct stock market listing as the company is too big for a SPAC merger.

Apart from Kraken, Bakkt is reportedly looking for a SPAC merger, however, there is no official confirmation on that yet.

Kraken CEO Jesse Powell Previously Hinted Going Live

Kraken CEO Jesse Powell has previously hinted at going public in 2022, but only at the right price. He discussed the possibility on Bloomberg TV on Mar. 4, saying that the firm was certainly on track to go public but not prepared to do so at its current valuation.

He did imply that an IPO could take place next year but assured that there were no guarantees.

For instance, crypto exchange Coinbase has an expected valuation of $100 billion while trading platform eToro is valued at $9.6 billion.

Meanwhile, just last month, Kraken sought new capital in a fundraiser that aimed to bring the firm’s valuation above $10 billion. Its contributors included Fidelity, Tribe Capital, and General Atlantic.

This signifies that Kraken would be the second or third major crypto company to be listed on the stock market.