Kraken is too big for SPAC IPO
A Kraken spokesman said the crypto exchange is too large to be publicly listed through SPAC. In addition, the company itself has not yet confirmed that it will conduct a public listing, following in the footsteps of American Coinbase.
Basically, the sudden response from the management of the exchange is associated with a speculative statement by Fox Business employee Charles Gasparino on his Twitter. Yesterday he announced that Kraken intends to conduct a public offering, one of which could be SPAC.
But today, Kraken executives have said that if they decide to “go public,” they will do so through direct listing, not SPAC.
SPACs or special purpose firms already listed on the stock exchange and able to buy private companies like Kraken “bypassing” a traditional IPO. The usual way for firms to go public involves filing with the SEC and issuing shares on their own. The latter also chose the cryptocurrency exchange Coinbase, whose estimated value was $ 100 billion.
Kraken appears to have taken inspiration from Coinbase's boldness and is not overly interested in a “takeover” by another company en route to an IPO. According to some estimates, the exchange predicts $ 10 billion, which, most likely, does not suit the head of the company Jesse Powell too much. After all, he previously stated that he would make the company public only if it was valued at more than $ 10 billion.
So far, none of the major American cryptocurrency exchanges has managed to go public. But I want to believe that soon Coinbase will be able to change this. After all, if the company manages to go public, even with an estimate of $ 100 billion, this will play an important role in the adoption of cryptocurrencies.
The article has an informational character, reflects the opinion of the author. Before you make a decision, analyze the market situation.