- Kraken secured $800 million funding, setting its valuation at $20 billion.
- Citadel Securities invested $200 million and formed a strategic partnership with Kraken.
The American-based crypto exchange Kraken has successfully completed an $800 million fundraising campaign, lifting its corporate valuation to an impressive $20 billion. The investment comes in two separate funding tranches and reflects revived investor confidence in the growth plans for the digital asset trading platform.
Strategic Partnerships Drive Funding Round
As part of Kraken’s fundraising second portion, there was a very significant $200 million investment by Citadel Securities, the leading US-based market-making institution. In addition to providing funds, Citadel Securities has formed a strategic partnership with Kraken to offer the expertise in liquidity management and market infrastructure. This collaboration comes after Citadel’s involvement in Ripple’s massive $500 million fundraising made to crypto ventures earlier this month.
The first round of financing was able to attract the support of a number of well-established financial firms like Jane Street, DRW Venture Capital, HSG, and Tribe Capital. The family office of the Co-Chief Executive of Kraken, Arjun Sethi, also made a notable contribution to the total amount raised during the fundraising.
Kraken leadership aims to use the fresh funds mainly to grow global operations and deepen its compliance with regulations in various areas. The trading venue is looking to expand its range of products by a mix of internal developmental initiatives and buy-side opportunities in overseas markets.
The company aims to extend its presence by entering the new markets of Latin America and the Asia Pacific regions in addition to the European territories, Middle Eastern countries, and African nations. Although the platform has a presence in a number of countries, it is now determined to raise the standard of its services and make new offerings available gradually.
IPO Speculation Continues Despite Funding Success
For a few years there have been rumors in the Industry about Kraken going public. In response, ex-CEO Jesse Powell had at one time said that the company was aiming for a public offering in 2022. Even though a rival Coinbase has already been listed for more than four years, Kraken still continues to be a private company without any firm plans for a listing.
Co-CEO Sethi pointed out that because of its solid financial situation and sufficient capital, Kraken does not feel the need to go to the public markets. The most recent financing round is a good signal of the exchange’s ability to carry out its expansion plans while still being a private company with the current owners.
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Source: https://thenewscrypto.com/kraken-secures-800m-investment-to-fuel-global-growth-at-20b-valuation/