Rothschild Investment Trust has purchased a stake in the Kraken cryptocurrency exchange.


During a webinar organised by institutional stockbroker Numis Securities, investors in the trust were told about the share.

Ewan Lovett-Turner, director and head of investment companies analysis at Numis Securities, disclosed about RIT Capital’s investment in Kraken in a note to investors dated April 12, calling it “a secondary market purchase at what [RIT Capital] thought was attractive value.”

The text, however, did not reveal the extent of the investment, the price paid, or the terms of the contract.

RIT Capital was established in 1961, founded by Lord Jacob Rothschild of the well-known Rothschild banking family – J. Rothschild Capital management limited (JRCM). Jacob  Rothschild managed the trust until he stepped down as a director and chairman in 2019. Currently, the trust has a market capitalization of around $5.28 billion.

Crypto Going Public

Kraken crypto exchange has been seeking to get further funding and has been planning to go public via a direct listing in 2022. According to CoinMarketCap, Kraken is the fourth largest crypto exchange by market cap. The exchange claims to have more than 6 million clients.

Kraken is well-funded, having completed its most recent round of investment in 2019 when Jesse Powell, the company’s CEO, raised $13.5 million at a valuation of $4 billion.

The thriving cryptocurrency industry has prompted Kraken Exchange to try a more aggressive valuation as it tries to list on stock exchanges.

The California-based cryptocurrency exchange has been in negotiations with investors to go public through a Special-Purpose Acquisition Company (SPAC) at a valuation of $10 billion.

However, the exchange just shelved the proposal in order to attract new money, which would value the company twice as well.

Kraken has been proactive in seeking a new funding round that will give the firm a valuation of $20 billion, allowing it to capitalise on the growing interest in the cryptocurrency industry. The interest is also mirrored in Coinbase’s value of $100 billion.

Last week, Coinbase became a public company through its direct listing on the Nasdaq stock exchange. The direct listing enables Coinbase to raise capital by allowing existing investors to convert their stakes in the company into the publicly traded stock.

 

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