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Kraken CEO Jesse Powell Says Company May File for IPO ‘Sometime Next Year’

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by Ibukun Ogundare · 3 min read
Kraken CEO Jesse Powell Says Company May File for IPO ‘Sometime Next Year’
Photo: Shutterstock

In the interview with Bloomberg, Powell noted that Kraken currently has “no reason” to raise new capital. The CEO, however, pointed out that the company may seek to accelerate its acquisitions.

The founder and CEO of US-based cryptocurrency exchange Kraken Jesse Powell said that the company may file for an initial public offering (IPO) in the coming year. Although Powell said the listing may come “sometime next year,” the CEO added that there are “no guarantees.”

Kraken CEO Says Company May File for IPO in 2022

Kraken CEO talked about the company’s potential IPO during an interview on Bloomberg TV on March 3rd. In response to whether he would take Kraken public at a $10 billion valuation, Powell answered:

“We are certainly on track though $10 billion dollars is a low valuation. I wouldn’t be interested in issuing shares at that price.”

Before Powell’s recent interview, Bloomberg had reported that Kraken was working on raising new capital that could move the company’s valuation from $4 billion to $10 billion. According to Bloomberg, Kraken was in talks with Fidelity, Tribe Capital, and General Atlantic to raise an undisclosed sum. Citing familiar sources with the matter, the report added that Kraken’s valuation could exceed $20 billion depending on demand.

Kraken’s valuation reached $4 billion in 2019 after the company raised $13.5 million in a financing round. The exchange saw more than 2,000 participants in the funding round.

In the interview with Bloomberg, Powell noted that Kraken currently has “no reason” to raise new capital. The CEO, however, pointed out that the company may seek to accelerate its acquisitions.

Speaking further, Powell talked about Bitcoin price and what investors should know. The CEO said that there was no reason to sell BTC. He stated:

“I think a lot of people are just waiting to buy the dip. I do think if you’re buying bitcoin based on speculation you should be looking to hold over a five-year period.”

Bitcoin Rebounds from Dip

After declining in the past week, Bitcoin has rebounded to cross the $50,000 milestone again. In the early hours of trading March 2nd, Bitcoin started recovering from the 21% dip recorded in the past week.

In a recent report, Coinspeaker stated that Bitcoin’s recent gains seem sustainable due to the healthy state of the futures market. As Bitcoin rebounds, there are predictions that the king coin may reach above $58,000, putting an end to pullbacks. The COO and co-founder of Stack Funds said Bitcoin may hit a new high of more than $58,332 if the digital asset closes at over $52,100.

A market analyst, Joseph Young, commented on Bitcoin’s recovery t0 $50,000. In a tweet, Young said:

“This time it’s [BTC] at default funding, no overcrowded futures market, spot market parity with futures, and high Coinbase premium, coupled with large outflows and institutional interest.”

Despite bullish predictions, currency strategist at LMAX Digital, Joel Kruger, told CoinDesk that he believes Bitcoin may still record losses in the future.

At press time, Bitcoin is down 3.66% to $48,620.46.

Bitcoin News, Business News, Cryptocurrency news, IPO News, News
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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