A massive US-based cryptocurrency exchange Kraken is planning a private offering to high-net-worth investors. The company delivered an email to its investors and clients to inform them about the investment opportunity.
In the email, the customers of the crypto exchange are asked to fill out an online survey before they get more information. Kraken emphasized that given the crypto bear market and the company’s “significant reserves,” it senses opportunities for acquisitions and that it is not in need of financing.
Kraken has valued its shares at $4 billion, with the minimum investment amount of $100,000, according to the email. The email further states, “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 exchange will be considering interested investor for eligibility to participate in the share offering. Those who have received the email can indicate their interest until Dec. 16. The exchange will provide further details in the near future, as the firm is also making efforts for the additional fundraising.
While the ICO market is extremely dead, the move by the exchange specifically seems to address hardcore crypto enthusiasts with substantial funds. Although, Kraken is quite cheaper as compared to the rest of the major exchanges.
Reportedly, Kraken has worked out on its tech and support personnel and introduced a new matching engine. The exchange has increased the staff during the summer. The exchange kept enhancing and improving its product.
Apart from that, crypto giant Coinbase obtained a $300 million investment and has ruled out holding an initial public offering (IPO) after it was valued at $8 billion.
Kraken is a US-based cryptocurrency exchange operating in Canada, along with the EU, Japan, and the US. It is still among the exchanges which have a significant number of coins listed. Currently, the exchange is a subject of a lawsuit regarding its support of the competing forks of altcoin Bitcoin Cash (BCH). Along with Kraken, the lawsuit is also filed against major entities such as Bitcoin.com CEO Roger Ver and Bitmain co-founder Jihan Wu.