Cryptocurrency exchange Kraken has filed to hold its highly anticipated initial public offering (IPO).
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Kraken co-CEO Arjun Sethi has confirmed that the crypto exchange has confidentially filed with the U.S. Securities and Exchange Commission (SEC) for a U.S. IPO. The CEO said Kraken strives to make advanced crypto trading strategies typically reserved for professional investors available to retail investors.
The timing of Kraken’s IPO is curious given that the cryptocurrency market remains depressed, with Bitcoin (BTC) unable to rise above $75,000. There had been earlier reports that Kraken had delayed its planned IPO due to the current slump in crypto prices and a difficult equity market.
Kraken’s Valuation
Kraken was recently valued at $13.3 billion, which is about $6 billion less than last November, when it was given a $20 billion valuation. Why Kraken has now decided to proceed with its IPO is not clear. Neither is the exact timing of the market debut.
Less than a month ago, Kraken executives said they were putting their IPO on ice amid an ongoing crypto winter that pushed the price of Bitcoin down 40% from its all-time high reached last October. As a cryptocurrency exchange, Kraken competes against the likes of Coinbase Global (COIN) and Gemini Space Station (GEMI).
BTC’s Three-Month Performance
The chart below shows that Bitcoin has struggled in recent months and declined 26% in the last 12 weeks as the selloff in cryptocurrencies that began last October has continued.
