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.
|Headquarters||San Francisco, California, United States|
|Number of employees||2,300|
|Revenue 2021||$25.7 million|
|Potential Valuation||$10.8 billion|
Source: Globe Newswire
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.
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.
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.
Sources: Business Insider, Bloomberg
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