Kraken in Strategic Investor Talks at $20 Billion Valuation

Core Viewpoint - Kraken is in advanced discussions to raise new funding that could value the crypto exchange at approximately $20 billion, as it prepares for a potential public listing [1][2]. Group 1: Funding and Valuation - The new funding round is expected to involve a commitment of $200 million to $300 million from a strategic investor, although it remains subject to market conditions [1]. - This funding follows Kraken's recent capital raise of $500 million at a valuation of $15 billion, indicating a significant increase in how private markets are valuing major players in the crypto sector [2]. Group 2: Company Background and Competition - Founded in 2011 and officially known as Payward Inc., Kraken has raised only about $27 million in primary capital until this year [3]. - The new funding will enhance Kraken's resources as it competes with publicly listed Coinbase Global Inc. and other global exchanges [3]. Group 3: Market Trends and IPO Plans - The fundraising efforts come as major players in the crypto industry accelerate their capital-raising activities amid a more favorable regulatory environment in the US and increasing mainstream adoption [4]. - Kraken has engaged Morgan Stanley and Goldman Sachs Group Inc. as bankers for its upcoming initial public offering, which is anticipated to occur next year [5]. - Reports indicate that Kraken aims to go public as early as the first quarter of next year [5].