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Kraken IPO: Everything you need to know

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Axi Team
Everything you need to know Kraken IPO

Following a sluggish 2022, the year 2023 could be when many fintech companies will offer their shares to the public for the first time. One of the hot tech listings thawing the IPO winter could be Kraken, the world’s leading crypto exchange.

The popular US-based crypto exchange was initially planning to make its public debut in 2022 with a direct listing, as its former CEO Jesse Powell had confirmed. Unlike an IPO, a direct listing sells only existing shares to investors, and therefore no new shares are created. But after seeing Coinbase’s poor direct listing performance, Powell decided that an Initial Public Offering is a much more attractive proposition.

 

Kraken company stats

Founded 2011
Headquarters San Francisco, California, United States
Number of employees 2,300
Revenue 2021 $25.7 million
Stock Exchange -
Potential Valuation $10.8 billion

Source: Globe Newswire

 

Why investors are interested in Kraken

Founded in 2011,  Kraken is one of the oldest Bitcoin exchanges in the world and the third biggest crypto exchange by trading volume. The San Francisco-based company currently offers 185+ cryptocurrency pairs for leveraged trading. According to its website, Kraken’s mission is to accelerate the adoption of cryptocurrency so that the world can achieve financial freedom and inclusion.

During the surge in crypto prices in February 2021, Kraken witnessed an increase of over 1000% in sign-ups. It then sought a valuation of $10 billion, which more than doubled its worth.  

In November 2022, Kraken laid off 30% of its workforce to stay afloat during the crypto crash, as Bitcoin plunged below $20,000.  

In February 2023, the SEC (Securities and Exchange Commission) asked Kraken to pay $30 million over allegations that its staking service was an illegal sale of securities. According to Bloomberg, SEC’s settlement with Kraken could have a sweeping impact on the crypto exchange industry that could involve big names like Binance and Coinbase Global.  

 

The IPO: When, where and what to expect

Kraken is expected to launch its IPO sometime in 2023. Although the details are still not known, the company appears to be doing all the right moves toward an IPO listing.

Kraken was valued at $10 billion in 2021 but allegedly sought to double its valuation to $20 billion. But in the current climate of crypto volatility, Kraken’s valuation remains to be seen.

 

3 steps to trade Kraken IPO with Axi

An Initial Public Offering (IPO) is an investor’s first chance to gain exposure to an organisation. An IPO is an important milestone for a company looking to raise capital and an opportunity for investors to get involved in a hopefully growing business.

With Axi you can get exposure to Kraken IPO as soon as it’s listed on a specific exchange and prices from the exchange become available to our liquidity providers.

  1. Login to your live MT4 trading account (sign up with Axi if you don’t have one)
  2. Navigate to market watch, right-click, and select ‘show all’. Search for Kraken.
  3. Choose your position and size and go long or short on share prices. Don’t forget to set risk management tools like a stop loss and take profit order. 

 

Sources: Business Insider, Bloomberg

 

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The data is sourced from third-party providers. This information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. It has been prepared without taking your objectives, financial situation, or needs into account. Any references to past performance and forecasts are not reliable indicators of future results. Axi makes no representation and assumes no liability regarding the accuracy and completeness of the content in this publication. Readers should seek their own advice.



Axi Team

Axi Team

The Axi team is full of people with decades of financial industry experience and knowledge of almost every aspect of trading. The Axi team blog, in addition to regular posts from our daily market analysis contributors, is a place to share wider insights and ideas. In this section, you’ll find posts about everything from forex education and helpful hints for new traders to product updates and important market announcements.


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