While Coinbase is about to go public, competitor Kraken is now also planning this move.
The corresponding Utterances Powell made at CNBC after Kraken previously released record numbers for the first quarter of 2021, showing significant increases in new customers and trading volume.
“Our first quarter beat the entire last year,” the CEO proudly proclaims. He adds: “We had already exceeded the figures from the previous year in February. The whole market just totally exploded. ”
When asked about a potential listing on the stock exchange, Powell then confirmed that the crypto exchange was actually considering an IPO, which, however, should not take place until 2022:
“We are working towards the fact that we can go public sometime next year. […] Similar to Coinbase, we would probably aim for a direct IPO. “
Coinbase is already much further with its plans, because the IPO of the competing crypto trading platform is already supposed to be to be performed on April 14th. A big step for the crypto industry and Wall Street as listed crypto companies are opening up a conventional way for investors to invest in cryptocurrencies.
As Kraken boss Powell announced for his company, Coinbase is also choosing the form of a “direct listing”, which speeds up the process significantly and makes it much less costly. With a direct listing, the shareholders of a company sell their existing shares directly instead of first issuing new “shares”, as is the case with an Initial Public Offering (IPO).
Just like Kraken, Coinbase also has one Record quarter laid down, bringing the crypto exchange’s revenue to $ 1.8 billion. The trading volume of the platform has shot up by 276% at the same time.
Although the Kraken is unlikely to achieve a company valuation of 100 billion US dollars through an IPO, as observers have already done for Coinbase forecast, this step should also be worthwhile for the smaller crypto exchange, because the trading platform is now too big to go public via SPAC. An alternative route that is becoming more and more popular in the USA, but is mainly used by smaller companies.
To that end explains an Kraken spokesman to Cointelegraph:
“If Kraken goes public, it will do so via direct listing and not via SPAC, because we are now too big for that.”