Kraken Plans $100M Raise Amid SEC Suit; Robinhood Eyes Bitstamp Acquisition
Summary:
US-based Crypto exchange firm, Kraken is considering a funding round that could raise over $100 million, potentially leading to an IPO. This comes as the firm faces a lawsuit from the SEC alleging violations of securities laws. Prior to this, Coinbase was the first US crypto exchange to go public. Despite these legal issues, Robinhood is planning to purchase Bitstamp, a crypto exchange, which could be finalized by 2025, pending regulatory approval.
The crypto exchange, Kraken, which is headquartered in the United States, is believed to be planning a funding round that could bring in over $100 million. This fundraising initiative could act as a stepping stone towards an eventual initial public offering (IPO). A June 6 Bloomberg article, citing anonymous sources, stated that Kraken's funding round could procure upwards of $100 million by 2025. While the exchange confirmed its continual strategic planning for global crypto integration, it refrained from making specific IPO remarks.
Kraken currently finds itself in the midst of a civil lawsuit, brought forth by the U.S. Securities and Exchange Commission (SEC) in November 2023. The SEC accuses Kraken of functioning as an unregistered exchange and violating U.S. securities laws by choosing to profit "hundreds of millions of dollars" from investors.
In terms of related news, in 2021, Coinbase established itself as the premiere crypto exchange to attain public status in the United States by floating its shares on Nasdaq. Prior to Coinbase's IPO, Kraken hinted that it would rather opt for a direct listing than a special-purpose acquisition company if it ever went public.
Despite ongoing SEC investigations, stock trading platform Robinhood recently disclosed its intentions to buy crypto exchange Bitstamp in a deal worth $200 million. Assuming that regulatory bodies approve the deal, it could be completed in the first half of 2025.
Published At
6/6/2024 9:29:32 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.