 
 
Crypto exchange Kraken is in no rush for a public listing amid recent speculation of an IPO. This year, several reports suggest the firm had secured top investors to back the offering as the United States market moved mega bullish.
Kraken Will Go Slow And Steady
In a recent interview, Kraken’s Chief Executive Arjun Sethi noted the frenzy behind going public but stated that the exchange is in no rush to open that chapter. The crypto industry has long speculated on a possible public listing for the firm in light of new developments.
In light of these, Sethi stressed he doesn’t want a perception that the company jumped on the trend because everyone else was moving in a similar direction. According to him, a positive aspect of these companies going public is the knowledge they impart to investors.
“We have enough capital on our balance sheet today as a private company, and we don’t want to race to the door as quickly as possible…What’s good about these companies coming out first is that they are educating the market on what’s good and what’s bad, what margin looks like, and how do you make money.”
Although the company insists on caution before an IPO, speculation has increased due to multiple events. First, the exchange raised $500 million from Apollo Global Management, Jane Street, and Oppenheimer, which increased the firm’s valuation to $15 billion.
 
A Bloomberg report in September suggested that the firm might consider investing another $200 million to $300 million to boost its valuation. Previously, Kraken had only raised $27 million from outside capital. Sources familiar with the matter added that the exchange had tapped Morgan Stanley and Goldman Sachs for the IPO.
Furthermore, in recent quarters, the firm has publicly disclosed its financials, which has raised investor interest. The company’s Q3 revenue reached $648 million, a 100% increase from the previous year, marking growth amid bullish sentiment. Meanwhile, whale volumes have also spiked on the platform, although it still trails Binance.
Several institutional investors are backing more crypto firms to go public because of the current positive regulatory outlook. Firms like Circle, the USDC stablecoin issuer, Bullish, and Gemini Space Station filed to go public this year.
Meanwhile, Ripple, which has long been linked with going public, brushed off the idea, insisting the company has no IPO timeline. This comes following negative trader sentiments in the wider market, crashing top assets to monthly lows.
Source: https://zycrypto.com/kraken-takes-cautious-approach-to-public-listing-amid-friendly-us-stance/