Kraken’s latest funding round could nab a valuation above $20 billion if there is enough demand.
The news comes after rival Coinbase submitted a public S-1 filing. Which sets the stage for its direct listing on Nasdaq under the ticker symbol ‘COIN.’
Coinbase posted $1.1 billion in net revenue for 2020, which more than doubled since 2019. It also raked in $322.3 million in profit last year after a $30 million net loss in 2019.
Kraken One Of The Oldest Cryptocurrency Exchanges
Kraken is one of the oldest Bitcoin exchanges and now offers a wide range of digital asset trading services. The exchange accounted for one of the largest spot trading volumes. And ranks among the top-10 platforms in terms of the Bitcoin Futures market.
Kraken revealed earlier this month that the platform processed $56 billion worth of cryptocurrencies in January. The exchange is currently working towards increasing its operations capacity due to the growing demand for cryptocurrencies this bull season.
Kraken was recently at the center of a controversy when the price of Ethereum fell below $700 in a bizarre price crash. Many believe the crash occurred due to a malfunction in Kraken’s trade engine.
Cryptocurrency companies growing this bull season
Many cryptocurrency companies have seen their valuation grow this bull season. A reported off-market valuation of Coinbase is said to be worth $100 billion.
Such a figure would not have been possible a couple of years ago. However, crypto exchanges are now consistently registering multi-billion dollar spot and futures volume in a single session.
This is evident of the significant rise in trading activity that can be directly be tied to the large influx of new traders.
Kraken is hoping the same will apply to them this bull season. The exchange could see its valuation go up to $20 billion if there is enough interest from investors.