The well-known exchange revealed that it needs more money to start its expansion plans. The expansion plan would help more customers globally get access to the exchange’s services and promote digital asset usage. The use of digital assets is growing at a phenomenal rate, as countries that had not been previously exposed to the blockchain tech can now have access.
Many exchanges, especially Binance, operate in different countries, providing structured services for locals in their currency. Kraken hopes to make its crypto services available to various customers by getting a large sum of money to start the process. According to Kraken, the funding should be around five times more than the firm’s current valuation.
Kraken seeks to expand business
In the life of every successful business, there will be a time it starts to expand to accommodate more people and improve its services. Now, Kraken shared that it would need new funding to help its expansion plans yesterday. The exchange hopes that the new funding would take its value above $10 billion or double its current value.
Kraken is amongst thousands of exchanges that are commencing expansion moves. The digital asset space is growing at a healthy speed and causing an impressive demand for crypto-related services in the global community. For exchanges to meet up with the new volumes, they have to expand and optimize their services.
An inside source revealed some information concerning the issue. He said that Kraken hopes to get some assistance from Fidelity, the financial institution, and other prominent financial world players.
According to the source, Kraken has spoken to the bank’s executives and has made the need for funding known to the institution. The business had also said it could take its funding to $20 billion, which is highly dependent on investors’ decisions.
Kraken speaks to Fidelity bank executives on plans
If Kraken raises $20 billion, as it said, it would be one of its largest fundraisers, as it tops 2019’s fundraiser by five times. The business raised around $100 billion, with the value being around $4 billion around that time.
The business did not use capital ventures to raise money. It got new investors who successfully raised the hefty amount. The business main earning comes from the fee charges on transactions performed on its platform.
The business also has margin trades, where users borrow money from the business to make higher stakes. It’s safe to note that Kraken is yet to go public, meaning that most of its revenues or earnings are not disclosed to the public. The founder created the business in 2011, making it an old and well-known business in the digital asset industry.
The business is still quite impressive as it records as high as $2 billion daily trading volumes, and it offers over 50 cryptos for customers to choose from. People linked Kraken’s new plans to Coinbase’s decision to go public, which is the firm announced since last year. Coinbase shared its earning, which was around $400 million in 2020. Many crypto exchanges would likely share new expansion plans to grow and move with the booming industry.