Kraken has announced that it is considering going public next year. The California-based cryptocurrency exchange has reportedly opted for a direct market listing. According to the report posted online by online financial trading research and news portal Finance Magnates, Kraken aspires to grow its operations further.
It has been actively boosting its services. Additionally, the next leading spot digital currency exchange in the United States after Coinbase has gained a bank charter in 2020. This event is under Wyoming’s special-purpose depository institution law.
This latest development involving Kraken is worth monitoring. We support the cryptocurrency exchange in its intended endeavor, considering that it is an indicator of cryptocurrencies gradually taking center stage in the evolving modern financial markets.
With Kraken’s plans to go public, it is reportedly aspiring for a $10-billion valuation for its next private funding round. Under the correct circumstances, such valuation could reportedly rise to $20 billion. Kraken is presently valued at $4 billion.
Charles Gasparino is the first person to disclose the cryptocurrency exchange’s intent for public listing. The Fox Business reporter used Twitter and remarked that there could be a conventional initial public offering or IPO involving Kraken. Gasparino also relayed that there is a possibility of a merger with a blank check acquisition firm.
Nevertheless, Kraken later made it clear that it is merely considering a direct stock market listing. It affirmed that the exchange is quite huge for a special purpose acquisition company or SPAC merger. In a direct listing, a business establishment goes public without issuing any extra stocks.
Kraken’s intention to go public through direct listing in 2022 does not surprise us at all. We learned that Jesse Powell had hinted earlier that the cryptocurrency exchange could go public next year. Plus, the Kraken chief executive officer emphasized that he would support an IPO only if he thinks the price is right.
We believe that Kraken is following the footsteps of Coinbase. Kraken’s competitor, which is the United States’ largest cryptocurrency exchange, is already in the process of going on a public debut later this month. Coinbase will go through a direct listing and might witness a valuation worth $100 billion. This feature can make Coinbase the most massive stock market debutant so far.
We want to extend our support and advanced felicitations to Kraken. With their plans of an IPO and other beneficial pursuits to grow their services, we view them as among the vanguards of cryptocurrencies and propelling these virtual assets to become mainstream modes of exchange.