Kraken, a US-based cryptocurrency exchange is reportedly planning for a private listing with a valuation of $4 billion. The cryptocurrency exchange which is the world’s largest Bitcoin exchange in euro liquidity and volume and operates in Japan, US, Canada, and the EU has sent out emails to select highly valued clients to update them about the investment opportunity.
According to reports, the content of the email sent by Kraken’s team invites the customers of the crypto exchange to fill out an online survey before receiving any additional information about the investment opportunity. Kraken however, notifies their customers in the email that it is not in need of financing but keeping an eye on the crypto bear market and the company’s ‘significant reserves’, it sees opportunities for acquisition.
Kraken, in the email sent to their clients, stated that the value of shares to be listed in the offering will be close to $4 billion. Apart from this the email also states that the minimum investment size for each of the customer will be of $1000,000. The transaction for the amount will be done through a 3rd party service which will be responsible for running accredited investor checks, manage transaction documents and ensure funding of the investment made.
The company is going to analyze each prospective investor and check their eligibility to find out whether they stand positive to be a part of the share offering. Customers who received the email from the company will have 16th December as the last date for responding to the survey.
Kraken’s effort behind the evaluation seems to target those hardcore crypto enthusiasts that still have a balance in their bank even after the death of ICO market. Comparing to its market competitors, Kraken has been notably cheaper in offering crypto-based services and this is what attracted crypto enthusiasts towards the company. However, some of the services were also mired in tech glitches at the time when the crypto market was on hike.
To change the situation, Kraken since then has been working closely to boost its tech and support personnel by offering a new matching engine. During summers, this year the firm also synthesizes their staff and upgrades its product on regular basis to meet the demands of their customers.
Now the private sale from the company can make the things favorable for the company as it simply targets high net worth individuals which are also sophisticated investors. The company itself believes that the crypto market is in the doldrums. However, despite the depression, the firm states that it is still profitable even in the current market situation. Even the past 30 days trading volume of the company says it is ranking on the 20th position as per coinmarketcap.com
A couple of months ago when Bitcoin was trading at around $6600, Coinbase at an $8 billion valuation managed to gather $300 million investment. Kraken, on the other hand, is eyeing for the valuation when the situation is getting worst day-by-day. Tough the company has an impressive number of coins listed on its exchange but still the Bitcoin and market for altcoins contracts are noticing despair which is a reason to worry for all.