Cryptocurrency Exchange Kraken Raises Millions in Share Offering
Major cryptocurrency exchange platform Kraken has announced that it will be offering shares of its company for as little as $1,000. This, according to an email distributed by the exchange on May 20, 2019.
As per the email, Kraken will be offering preferred shares through investment platform, BnkToTheFuture.
The offer, which will last only until June 20, 2019, has already broken past the initial goal of around £4 million (~$5,063,380). Now, that figure sits at £7 million (~$8,859,445), with the aims of reaching a new goal of £12 million (~$15,190,140). So far, the fundraiser has attracted 832 investors.
In response to criticisms of the increased limit, BnkToTheFuture wrote:
A Tweet from Kraken has, however, raised some eyebrows, with respondents beginning to question the investment “opportunity.”
The most recent report from Diar further detailed that Kraken, which has a $4 billion valuation, is offering up 0.255 percent equity through BnkToTheFuture. Diar speculates that this is a bid to “inject some liquidity into its war chest,” which comes a few months after the exchange acquired Crypto Facilities, a cryptocurrency futures broker.
According to Diar, Kraken’s brand new futures arm has grown 1,700 percent since its acquisition, making it quite the player in the space.
Other criticisms of Kraken came a little to pre-emptively:
This knee-jerk response was, of course, shut down shortly by those who took a couple of minutes to investigate the matter themselves.
Previously, Kraken has sought to raise funds from investors in December 2018, which at the time was reserved only for “select” investors. During this round, the minimum investment was $100,000.
This was a timely move as the enduring crypto winter had applied significant pressure on the entire cryptocurrency industry, and as such, institutional investment became a considerable trend through 2018 and much of 2019.
At the time, Kraken sent out an email to investors, writing:
“We’re profitable and sitting on significant reserves so fundraising is not a necessity, however, further aligning interests with our top clients while building a war chest for acquisitions in the bear market presents a win-win opportunity.”