Cryptocurrency Exchange Kraken May Follow Coinbase & eToro and Go Public Next Year
US cryptocurrency exchange Kraken is reportedly going public next year either through a direct listing or a special purpose acquisition company (SPAC).
This is according to Fox Business reporter Charles Gasparino as Kraken is yet to announce its plans officially.
A SPAC Merger Or An IPO?
In a tweet, Gasparino disclosed that Kraken’s executives were looking at going public, possibly through a (SPAC) or an initial public offering (IPO) sometime next year. He noted that various members of the crypto industry were expecting a raft of crypto SPACs this summer.
He stated that the industry also expects more regulatory scrutiny.
Founded in 2011 by Jesse Powell, Kraken is the fourth-largest cryptocurrency exchange in the world, available in 176 countries with over 40 cryptocurrencies available for trade.
If Kraken chooses to go public through SPAC, it would have to create a company without commercial operations specifically to raise capital through an IPO. In an initial public offering (IPO), Kraken would sell shares of its company.
However, a Kraken spokesperson confirmed to multiple news sources that the company is only considering a direct stock market listing. The unnamed spokesperson said Kraken was too big for a SPAC merger.
Kraken Could Be the Next Crypto Listing
Coinbase, the premier crypto exchange in the U.S as well as a close competitor to Kraken, is already making moves for its direct listing. Coinbase is reportedly valued at $100 billion and is expected to start trading on the Nasdaq exchange later this year. Another company that is set to go public is the social trading platform eToro.
eToro plans to go public through a SPAC merger. The eToro merger is a $10.4 billion deal that is backed by Fintech Acquisition Corp V.
Although Kraken is yet to formally announce its plans to go public, last month, founder and CEO Powell hinted at the possibility. In an interview on Bloomberg TV, Powell said that while the firm was certainly on track to go public, it was not prepared to do so with its current valuation. The latest developments show that other Kraken suits are clearly supporting the IPO plans.