Kraken reiterates tentative plans for direct listing next year

Kraken, one of many world’s largest cryptocurrency exchanges, has tentative plans to go public subsequent 12 months, in response to CEO Jesse Powell.

Powell appeared on a section on CNBC after Kraken revealed record-breaking fourth-quarter outcomes, together with a surge in buying and selling volumes and new shopper signups.

“The primary quarter simply utterly blew away the whole lot of final 12 months,” he stated. “We beat final 12 months’s numbers by the top of February. The entire market has actually simply exploded.”

Concerning a possible inventory market debut, Powell stated 2022 is a possible goal for a brand new itemizing:

“We’re with the ability to go public someday subsequent 12 months. […] It will in all probability be a direct itemizing, just like Coinbase.”

Coinbase plans to stage its public providing on April 14, offering Wall Avenue with a extra standard strategy to achieve publicity to the crypto increase. In contrast to a conventional preliminary public providing, the corporate will go public via a direct itemizing. Meaning the present house owners of Coinbase shares will convert their holdings to make them obtainable for itemizing — a transfer that avoids a prolonged, expensive underwriting course of.

Like Kraken, Coinbase is coming off a record-breaking first quarter, with revenues hitting $1.eight billion following a 276% surge in buying and selling quantity.

Though Kraken is unlikely to attain the identical $100 billion valuation that many analysts are predicting for Coinbase, a public itemizing would seemingly nonetheless be large. Final month, Kraken advised Cointelegraph that its public itemizing would merely be “too massive” to undergo a particular objective acquisition firm, or SPAC.

An organization spokesperson defined:

“If Kraken would resolve to go public, it could achieve this via a direct itemizing and never via a SPAC as we’re too massive to go that route.”