Crypto exchange Kraken wants to double company value through financing round
New investment capital from investors like Fidelity could boost the platform’s enterprise valuation to more than $10 billion.
Major American crypto exchange Kraken is apparently in talks regarding a new round of financing that would increase the platform’s enterprise value to US$10 billion.
Bloomberg reports on the corresponding plans with reference to anonymous sources. According to the report, Kraken has already Profit Revolution contacted major investors such as Fidelity, Tribe Capital and General Atlantic.
One of the sources suspects that the company’s value could even rise to 20 billion US dollars as a result of the additional money if demand is unexpectedly high.
In 2019, Kraken had raised US$13.5 million from more than 2,000 investors through investment platform Bnk to the Future, with the company’s valuation at the time standing at US$4 billion.
As a result, the trading platform’s market value
The latest news comes against the backdrop of the leading American crypto exchange Coinbase recently filing for an official initial public offering (IPO). As a result, the trading platform’s market value has recently risen to almost 100 billion US dollars through the private sale of company shares.
According to crypto information portal CoinMarketCap, Kraken has handled a trading volume of just under 2 billion US dollars in the past 24 hours, while Coinbase recorded 3.85 billion US dollars in the same period.
However, the planned funding round is also in light of the flash crash on 22 February, which saw Ether on Kraken slide to just US$700, while the second largest cryptocurrency was trading above US$1,300 on other exchanges.
For many users of the platform, this was accompanied by considerable losses, which is why some of them are now considering a class action lawsuit against Kraken. The crypto exchange has already announced that it will not reverse any trades or pay out any compensation.
On 22 February, Kraken also set a new record high for its daily trading volume, which broke the $4 billion mark for the first time that day.