Kraken is a leading cryptocurrency exchange based in the US that has grown substantially larger in the last few years.
Kraken is now looking to increase its valuation by a massive $5 Billion with an aim to reach a total valuation of over $10 billion.
Leading Exchange Kraken To Raise Funds to Double Its Valuation To $10 Billion.
Bloomberg reported that Kraken is planning to raise an additional $5 Billion in funding to increase its total valuation. As per the reports, General Atlantic, Fidelity and Tribe Capital will be taking part in the funding round. Kraken rival, Coinbase, is bracing up to launch its Initial Public Offering in Nasdaq and has completed the next step of the process with a filing on Thursday. Kraken reported that $56 billion worth of cryptocurrency was traded in January, which was more than the entire trading volume of 2020. The exchange is bracing up to facilitate infrastructure to handle the increased demand. Kraken is a veteran crypto exchange with close to ten years in operation, being in existence since the early days of the inception of Bitcoin and crypto. Kraken is based in San Francisco facilities Bitcoin, Ethereum, Litecoin, other digital assets, and fiat currencies as well. Cryptocurrencies and digital assets have garnered massive attention in recent times, with leading names in the mainstream financial space adopting crypto. While Bitcoin remains one of the most popular cryptocurrencies, other digital tokens like Ethereum, ADA, and even Dogecoin have attracted a large number of people. With the increased demand for crypto tokens, the crypto exchanges have seen an influx of high volumes of new customers.
Bitcoin surpassed $58000 this week, creating a stir in the financial markets. With Bitcoin’s immense bullish run since last one year, more and more people have taken the plunge into crypto trading. The increased interest in Bitcoin trading is beneficial for crypto trading exchanges which earn revenue through transaction fees. Kraken intends to keep up with the increased demand in the crypto trading sector and compete with leading rivals like Coinbase by augmenting its services.
Kraken is also planning to introduce Kraken Bank, and the firm introduced the Kraken Bank team in a blog. The blog showcased Kraken Bank CEO David Kinitsky, who shared the details of how the team is building the next-generation financial solution.