Kraken setting up to go public in 2022 in a bid to rival Coinbase

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In an interview today, Jesse Powell, CEO of crypto exchange Kraken, said that his company is considering going public via a direct listing at an undisclosed date next year, close to leading crypto exchange Coinbase. In an interview with CNBC, he revealed:

We are looking at being able to go public sometime next year. It would probably be a direct listing, similar to Coinbase.

Coinbase reported last week the ‘effectiveness of registration statement’ of its Form S-1, which was previously lodged with the United States Securities and Exchange Commission and refers to the exchange’s request for a public direct listing of its Class A common stock.

The SEC declared on April 1 that the “anticipated listing date” of its Class A Common Stock will be “effective.” As a result, the federal government has granted permission for the Class A Common Stock to be traded on the Nasdaq Global Select Market.

The Kraken CEO also stated that the crypto company is currently in talks with investors for a new round of funding, which some reports estimate to be close to $20 billion. Powell asserts that:

We have been in some talks to do another round. We’ve kind of been delaying a bit to see where the Coinbase valuation comes in at. I suspect that the price is gonna pump much higher than it has been trading at.

However, Powell quickly added that his team was “not in a rush to raise capital.”

The reason to do it [raise funds] would just be to bring on some more strategic investors who can help us with geographic expansion and growth.

According to data from CoinMarketCap, Kraken serves about 6 million clients and is the fourth-largest exchange by trading volume.

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Powell revealed that the Bitcoin rally helped the company improve its numbers and that the first quarter in particular “just completely blew away the entirety of last year.”

We beat last year’s numbers by the end of February. The whole market has really just exploded.

The crypto exchange’s spot trading volumes in the first quarter were reportedly 1.5 times higher than the overall numbers recorded last year, thus reaching “a record level of $160 billion.”

 

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