Bitcoin has made impressive gains in the last few months due to the growing appetite of institutions in the primary cryptocurrency. During that period, many exchanges recorded staggering numbers in trading volume and all round growth. Following a record trading volume, Kraken has also announced to go public in 2022.
Kraken to go Through a Direct Listing Next Year
Kraken exchange has revealed that it made mind-blowing profits in Q1 2021 due to the Bitcoin rally caused by institutions FOMO. Jesse Powell, Kraken CEO said “volatility is good” for the firm “but it’s always better when it’s on the way up.” He added that the company’s records in the first quarter of 2021 were way better than those of 2021.
On March 13, the whole cryptocurrency market soared after Bitcoin hit a record high above the $60,000 level. Although Bitcoin failed to sustain that move, long-term investors have not stopped accumulating. Glassnode also reported a drop in Bitcoin selling pressure while predicting another bullish run.
Following the immense growth of the firm, Kraken announced its plan to go through a direct listing next year. Unlike the traditional IPO, there are no new stocks issued in a direct listing, there is no underwriter nor is there a lockup period. Many firms are now opting for direct listing because they offer more benefits such as increased liquidity.
Kraken Exchange Plans a New Funding Round
Ahead of the listing, Powell also revealed that the firm is “in some talks with investors” for another funding round. He added that the round could raise the valuation to about $20 billion. However, he continued that the firm is not in a rush to raise funds, claiming a strong balance sheet.
Kraken’s spot trading volumes hit a record level of $160 billion in the first quarter. The platform also recorded a 4-fold increase in the number of new users who signed up, making it the fourth-largest exchange by trading volume.