Cryptocurrency exchange Kraken is in talks with investors to raise fresh capital that will take its valuation to more than $10 billion, according to a Bloomberg report on Thursday.
The exchange is reportedly discussing the possibility of the fundraising round with Fidelity, Tribe Capital and General Atlantic for an unknown sum, but none of them officially confirmed.
Moreover, the anonymous source of the publication revealed that, if the investors’ demand remains high, the exchange might try to receive a valuation of $20 billion.
Kraken is one of the top cryptocurrency exchanges in the United States offering spot, margin and derivatives trading. It also benefited from the recent crypto rally as many new users flocked to the exchange to purchase crypto.
ACY Boosts Brand Exposure on Everest Day as Official Trading Sponsor of ATCGo to article >>
Based in San Francisco, Kraken is well funded, closing its last funding round in 2019. Then, the Jesse Powell-led company raised $13.5 million at a valuation of $4 billion, meaning the exchange is now poised to double that number.
The Big Break for Crypto Exchanges
Meanwhile, Kraken’s key competitor and United States’ largest cryptocurrency exchange, Coinbase, is approaching Nasdaq for the direct listing of its stocks and made its S-1 Form public recently. Though the official valuation of Coinbase has not been decided, shares of the company are being traded at a $100 billion valuation privately.
Once known for exiting New York because of the harsh BitLicense requirements, Kraken has strengthened its presence in the United States over the years. Last September, it received a license from Wyoming, becoming the first cryptocurrency bank under the state’s special-purpose depository institution law.