Kraken IPO Incoming?

While the company hasn’t specifically stated that they are pushing for an IPO (they say both public and private market fundraising is on the table), we can’t help but predict one is on the way…

Author

Dillon Newman
April 24, 2024 • Estimated Reading Time: 3 minutes

The second largest US crypto exchange, Kraken, continues to ramp up its offerings.

Case in point: Last week, the company acquired Tradestation’s crypto arm giving it access to the company’s money transmitting licenses in 47 states.

Since January, Kraken has been on our shortlist for companies to file for an IPO this year. While the company hasn’t specifically stated that they are pushing for an IPO (they say both public and private market fundraising is on the table), we can’t help but predict one is on the way…

  • Putting profits to work: The company’s $100 million venture fund is beginning to make moves including leading investment rounds such as Usual Labs’ $7 million round.

  • European expansion: In February, the company secured a Dutch license, allowing the exchange to offer services in the Netherlands.

  • Bring on the institutions: In February, the company launched a platform specifically for institutional investors. The platform will allow Kraken to compete directly with Coinbase which currently controls more than 90% of the institutional market.

  • Wallet Expansion: Last week, the company released a self-custodial mobile wallet to take on the likes of Metamask and Coinbase. Kraken went one step further though by open sourcing the entire code base.

Lastly, we also can’t forget the fact that the exchange loaded up its C-suite with seasoned executives and IPO talent in 2023.

What’s Stopping Them?

The road to Kraken’s S-1 is likely going to be bumpy.

Kraken is still facing down an SEC lawsuit. And while the company believes they will win and the SEC has been losing crypto cases again and again, the fact is worth noting.

Remember that Coinbase wasn’t sued by the SEC until after they IPO’d. Kraken will need to settle this before they can move forward.

But here at CoinSnacks we are rooting for Kraken. They seem to be good people, trying to do the right thing for bringing financial freedom to people around the world.

Even when there was pressure to cut off Russian accounts, the company stood firm:

We are wishing them the best of luck.