Kraken is one of the biggest cryptocurrency exchanges, which sought a valuation worth $10 billion in its most recent funding round. It is going to be more than double its worth from the past funding, which was near about $4 billion.

As per reports, Kraken has been in talks with the financial services company Fidelity, the venture firm Tribe Capital, and General Atlantic, the investment firm. The report has added that this valuation may cross the $10 billion mark in this particular round; however, other terms of discussion are yet to be known.

Kraken was established in 2011, and it is one of the oldest cryptocurrency firms. It is having 59 cryptocurrencies available for its trading platform. This jump in the valuation in Kraken is coming at this time when it is trading with digital assets, including skyrocketing of cryptocurrencies. Kraken unraveled that $56 billion of trading, which was done in January of this year, was greater than the trading volume of 2019.

Cryptocurrency firms have been generating revenue from the transactions that took place on the platform in the form of service fees for making transactions. As the maximum of retail investors are investing their money in cryptocurrency, more transactions are taking place, which is leading to the growth of revenue for these firms.

Kraken also noted that it had witnessed more than 1000% of the increase in signing ups during the first week of February when the valuation of bitcoin was going to make a record of crossing $58000. Kraken is one of the earliest firms; it is still not the biggest one. It ranks in the fifth position as per reports.

As Kraken is seeking $10 billion in value, it is much bigger than their rival, Coinbase, which is going for a direct listing on the Nasdaq stock exchange. As per the recent sale of its share in the private market, the company was valued at $100 billion.

Coinbase was profitable last year as their retail interest increased. It was having a net revenue of $1.1 billion in 2020 with a $322 million profit after reporting a loss of $30 million in 2019.

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