Report: Kraken Is In Talks For A New Funding Round
Report said that Kraken, the US-based cryptocurrency exchange, is in talks for a new funding round that could double the company’s valuation to $10 billion, or more.
It has been reported that the raise was reported by Bloomberg, who cited anonymous sources claiming Kraken is in discussions with top investors including, Fidelity, Tribe Capital, and General Atlantic.
However, one of the sources estimated Kraken’s valuation could soar as high as $20B billion depending on demand. In 2019, Kraken used the crypto-friendly investment platform Bnk to the Future to raise $13.5 million from more than 2,000 participants at a $4 billion valuation.
The report said that the news comes amidst anticipation for Coinbase’s direct listing IPO, with Coinbase’s market value recently rocketing to nearly $100 billion based on secondary trade in privately-held shares.
Release the @krakenfx! The U.S. exchange is in talks with @Fidelity and Tribe Capital looking to fundraise at a $10B valuation. https://t.co/XbN5gzgHGG — Cointelegraph (@Cointelegraph) February 26, 2021
CoinMarketCap stated that Kraken processed nearly $2 billion in volume 2 days ago, while Coinbase hosted $3.85 billion over the same period.
Likewise, the news about the reported raise comes less than one week after many of its users threatened legal action over the violent February 22 flash crash that saw Ether change hands for just $700 on Kraken while rival exchanges had prices above $1,300. The pricing triggered cascading liquidations on the platform.
Thus, Kraken has indicated it will not refund users for losses or roll back trades, despite calls for refunds from affected margin traders.