CEO Jesse Powell Says Kraken Exchange Could Go Public Next Year
Jesse Powell, Chief Executive Officer of crypto exchange Kraken, has confirmed that the firm plans to go public next year.
In an interview with Bloomberg, Powell said the exchange’s initial public offering (IPO) could happen anytime between 12 to 18 months.
Kraken Could Become Second US-based Crypto Firm To Go Public
When it happens, Kraken would become the second US-based crypto firm to go public after Coinbase. Coinbase went public through a direct listing on the Nasdaq Stock exchange in April with a valuation of around $65 billion at the time.
According to Powell, Kraken is already going through the rigors of becoming a publicly traded company. Although he declined to give the firm’s target valuation, he said their valuation would reflect their success in bringing crypto to the world. Powell’s words,
“We’re on a mission achieving to bring crypto to the world, and our valuation hopefully will be a reflection of our success in that mission.”
This is not the first time news of Kraken’s IPO plans would be revealed. In March, a Fox Business reporter, Charles Gasparino, claimed that the company was looking at going public through a special-purpose acquisition company (SPAC) or an initial public offering (IPO).
However, a Kraken spokesperson said the company was “too big” to go public via a merger. With the SPAC and direct listing route probably off the table, Powell’s announcement means Kraken may pursue an initial public offering.
Speaking further during the interview, when asked if people are trading differently after the recent sell-off, Powell said that the people selling are mostly newer to the market.
According to him, the old investors that have been holding for a long time are still accumulating. He said that the new investors who are yet to understand the market are not willing to hold onto their assets.
Powell added that people who came into crypto for the quick gains leave once the price drops, while those who truly understand the fundamentals remain.
Kraken Expanding Services
With more than 6 million clients in almost 190 countries, Kraken is one of the five largest crypto exchanges in the world.
The firm has done remarkably well this year as it continues to boost crypto adoption. According to Powell, the firm got more sign-ups this year than in any other year.
Kraken also expanded the reach of its services by launching its mobile app for both iOS and Android users in Europe and the United States.
Earlier this year, reports had it that the San Francisco-based exchange was in talks to raise a new funding round to boost its valuation to surpass $20 billion.
Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system. When not immersed in the daily events in the crypto scene, he can be found watching legal reruns or trying to beat his Scrabble high score.