Cryptocurrency News

Kraken Plans To Double $10 Billion Valuation With New Fundraising

The crypto exchange has been talking about expanding its business for some time, and it believes that fundraising is the best opportunity for expansion. The trading platform is one of the most used platforms, and some linked the new push for expansion to the high demand of the digital asset industry.

The industry grows larger by the day, causing the crypto-providers to broaden the services they offer the space. According to sources, the platform would push aggressive fundraising to add $10 billion to its current valuation to double the valuation. The company has had numerous fundraising in the past, but this would be one of the largest.

Kraken plans to go public

The exchange wants to be listed on public markets while exploring the increasing hot interest for digital assets since 2017. The fund would allow Kraken to offer more services to interested users and skyrocket its annual earnings.

The business’s main source of earning comes from the service fees charged during transactions, but people can pay more transaction fees with more services. Some sources revealed that the company wants to go public at a value of $10 billion, but the firm might put that plan on hold as it wants to double its valuation.

The source, who is well familiar with current matters in Kraken, revealed that the firm is doing all it can to get more investors for the business. The platform wants to get a higher valuation to explore the growing interests investors have for digital assets.

Early this year, many exchanges reported an overwhelming rise in customers, who made the business have higher volumes and more impressive earnings. The huge rise in people shows that investors see cryptos as an investment that can alternate gold. While Bitcoin is still underperforming in the past few days, the asset shows more promise than the yellow metal that recently hit its most significant low against Bitcoin.

Coinbase chooses direct listing for going public

Kraken is not the only one thinking about going public; Coinbase recently announced that it would go public through direct listing as it pushes expansion plans as well. While refusing to speak regarding the fundraising, Kraken’s CEO, Jesse Powell, explained that Kraken could raise double its current valuation in an interview. The entrepreneur also spoke about the firm going public through SPAC.

Powell revealed that the firm would likely utilize direct listing like its rival, Coinbase. Many tech-based firms are opting out of initial public offerings to pick a faster method, directing listing.

Powell believes that Kraken has a healthy balance sheet, which is usually common for firms that go through a direct listing. The company would be able to sell shares without going through liquidation, which is a step in the right direction. Kraken’s CEO is well-respected in the crypto space for his advocacy and push for digital asset adoption.

The firm has also grown to earn the space’s trust through the user-friendly interface and advanced tools for experts. If the firm eventually raises the anticipated amount, it would have enough to start many projects.

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