In this article, you will learn what is the valuation of Kraken and how does Kraken seek $10B+valuation in new funding round. Kraken is one of the earliest cryptocurrency exchanges that are still in operation. Jesse Powell established Kraken in 2011 to build a stable and secure exchange and launched it to the public in 2013. Jesse helped Mt. Gox responded to a major hack in June 2011 and realized that a secure crypto exchange is pivotal for a thriving crypto ecosystem. Now, Kraken is the largest crypto exchange based on Euro trading volume.
What is the Valuation of Kraken?
Company valuation, also known as business valuation, is the process of assessing the total economic value of a business and its assets. During this process, all aspects of a business are evaluated to determine the current worth of an organization or department.
Kraken has raised just $129 million in venture capital since 2011. Significantly less than Coinbase ($547M) and FTX ($1.8 billion), two of its larger competitors. Kraken's current valuation is estimated to be $10 billion, putting it at avenueuation/re multiple of ~7.4X. This is higher than the market cap/revenue multiple of publicly traded Coinbase (5.5X) but lower than the largest private crypto exchange Binance (15X). Kraken's competitors, Binance and Coinbase, grew at nearly the same pace in 2021 but Binance has a much higher valuation of $300 billion as it processes ~4X crypto trading volume, compared to Coinbase.
How Does Kraken Seek $10B+ Valuation in New Funding Round?
Major US-based crypto exchange Kraken is reportedly in talks for a new funding round that could double the company's valuation to $10 billion, or more.
One of the sources estimated Kraken's valuation could soar as high as $20B billion depending on demand.
In 2019. Kraken used the crypto-friendly investment platform Bnk to the Future to raise $13.5 million from more than 2.000 participants at a $4 billion valuation.
The news comes amid anticipation for Coinbase's direct listing IPO, with Coinbase's market value recently rocketing to nearly $100 billion based on secondary trade in privately-held shares.
According to crypto market data aggregator CoinMarketCap, Kraken processed nearly $2 billion in volume over the past 24-hours, while Coinbase hosted $3.85 billion over the same period.
The news about the reported raise comes less than one week after many of its users threatened legal action over the violent Feb. 22 flash crash that saw Ether change hands for just $700 on Kraken while rival exchanges had prices above $1.300g ca ger liquidation. on the platform.
Despite calls for refunds from affected margin traders, Kraken has indicated it will not refund users for losses or roll back trades.
Feb. 22 also saw Kraken post a new record for daily volume, hosting more than $4 billion worth of spot trades in 24 hours.
Bottom Line
Kraken was one of the first bitcoin exchanges to be listed on Bloomberg Terminal and is reportedly valued at US$10.8 billion. This article is about what is the valuation of Kraken.
