Leading cryptocurrency exchange Kraken is reportedly in discussions for a final funding round, aiming to raise approximately $100 million before launching its initial public offering (IPO). According to Bloomberg sources, Kraken intends to complete this funding round by the end of the year. However, a Kraken spokesperson declined to comment on these developments when contacted by crypto.news.
Kraken’s Legacy and Legal Hurdles
Kraken, a prominent player in the crypto industry, has a long history of advancing the sector. Despite its robust reputation, the company faces unresolved legal challenges that could impact its fundraising efforts. Last year, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Kraken, accusing it of commingling client assets with corporate funds and operating an unregistered securities exchange. Kraken has denied these allegations and is actively defending itself, alongside other industry peers such as Coinbase, which faces similar legal battles.
Pre-IPO Trends Among Crypto Companies
Kraken’s move to raise funds ahead of its IPO is part of a broader trend among U.S.-based crypto companies seeking to bolster their valuations amid shifting regulatory landscapes. As the U.S. approaches the winter presidential elections, several crypto firms are planning IPOs. In January, stablecoin issuer Circle filed for an IPO following a previously unsuccessful attempt via a special purpose acquisition company (SPAC) agreement.
In a related note, social network Telegram, though not originally a crypto-native company, has gained attention for its blockchain affiliations with The Open Network (TON) and is also preparing for an IPO.
Conclusion
Kraken’s ambitious $100 million pre-IPO funding round underscores its strategic efforts to fortify its financial position despite ongoing legal challenges. As the regulatory environment evolves, Kraken, along with other crypto firms, is navigating complex landscapes to achieve its public offering goals. The outcome of these efforts will be closely watched by industry stakeholders and investors.
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