Kraken in Talks to Raise New Funding with a Valuation as High as $20 Billion

Kraken, a San Francisco-based crypto exchange, is in talks to raise new funding that would more than double its valuation.

Founded in 2011 by CEO Jesse Powell, the company is in discussions with firms like Fidelity, General Atlantic, and Tribe Capital reported Bloomberg citing people familiar with the matter.

The lead investors and terms aren't final yet, but reportedly Kraken’s valuation could exceed $20 billion, depending on demand.

Back in 2019, it raised $13 million at a roughly $4 billion valuation from the investment platform Bnk to the Future.

In the current market, everyone wants to take advantage of the bullish scenario and raise funds. Just yesterday, Kraken’s competitor Coinbase filed for a direct listing on Nasdaq rather than a traditional initial public offering (IPO). The exchange has been valued at over $100 billion, making it one of the biggest companies to go public since Facebook Inc.

The filing made public revealed that the company's net revenue of $1.14 billion, 96% of revenue last year came from fees on trading volume. According to its filing with the SEC, verified users of the exchange increased 34% to 43 million last year, and monthly transacting users soared 180% to 2.8 million.

The company didn’t list an address for its headquarters, saying that it has become a “remote-first.” Started in 2012, it has raised over $500 million from backers.

Coinbase’s direct listing is expected to be a break-through movement for the industry, further taking crypto mainstream.