One of the most prominent crypto exchanges in the US, Kraken, is mulling over a private offering. The company sent an email out to its most prominent clients, which informs them about the investment opportunity.
According to the contents of the email, the customers of the crypto exchange are invited to fill out an online survey before they get additional information. Kraken underlines that it is not in need of financing, but given the crypto bear market and the company’s “significant reserves,” it sees opportunities for acquisitions.
Kraken Valuation at $4 Billion
The valuation at which Kraken is listing shares for sale is $4 billion, and the minimum investment size is $100,000, the company said in the email.
“The transaction process will be done by a 3rd party service, who will run accredited investor checks, facilitate the Execution of transaction documents, and the funding of your investment,” the emails states.
Kraken is going to be evaluating each prospective investor for eligibility to be a part of the share offering. The customers who received the email have until December 16 to respond to the survey.
More details are to be provided in the near future, as the company probes its prospects for the additional fundraising effort.
Private Sale in a Bear Market
With the ICO market essentially dead, Kraken's effort seems targeted at hardcore crypto enthusiasts with substantial funds. The company has been notably cheaper when compared to many of its competitors, but its service was also mired in tech glitches as the crypto market ran hot last December.
Since then, Kraken has taken the initiative to boost its tech and support personnel and launched a new matching engine. The firm consolidated staff over the summer and has been consistently upgrading its product over the past several quarters.
The private sale could be well targeted, as it appears to be focused on high net worth individuals which are also accredited investors.
Valuation
The valuation at $4 billion might turn some heads. As the company states itself, the crypto market is in the doldrums. Despite the firm stating that it is profitable even in current market conditions, it is currently ranked 20th by trading volume over the past 30 days on Coinmarketcap.com.
Earlier this year, Coinbase got a $300 million investment at an $8 billion valuation. At the time Bitcoin was trading at around $6600.
Kraken is still one of the exchanges that has an impressive number of coins listed, but as the market for altcoins contracts and Bitcoin dominance is on the rise, its advantage when compared to major competitors such as Coinbase could be evaporated.
In any case, if you were waiting for an opportunity to risk $100,000 on the crypto market, and you're an accredited investor, you might have found a new alternative to just buying cryptos.
