The cryptocurrency exchange previously indicated plans for a direct listing if it decides to go public.

United States-based cryptocurrency exchange Kraken is reportedly considering a significant funding round to raise over $100 million in anticipation of a potential initial public offering (IPO).

According to a June 6 Bloomberg report, citing sources familiar with the matter, Kraken is looking at a funding round expected to raise more than $100 million by 2025. The exchange stated it is “always exploring strategic paths” toward global crypto adoption but did not explicitly comment on the potential IPO.

Kraken is currently embroiled in a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in November 2023. The SEC alleges that Kraken operated as an unregistered exchange and profited hundreds of millions of dollars from investors in violation of U.S. securities laws.

In 2021, Coinbase became the first crypto exchange to go public in the United States, listing its shares on the Nasdaq. Prior to Coinbase’s IPO, Kraken had announced that if it chose to pursue a public offering, it would do so via a direct listing rather than through a special-purpose acquisition company (SPAC).

Despite facing scrutiny from the SEC, other companies in the sector are moving forward with strategic acquisitions. For instance, stock trading app Robinhood recently announced plans to acquire crypto exchange Bitstamp in a $200 million deal. If regulators approve the agreement, it is expected to be finalized in the first half of 2025.

As Kraken navigates regulatory challenges and explores potential funding and public offering avenues, the broader cryptocurrency market continues to evolve, marked by strategic investments and acquisitions aimed at strengthening industry positions and fostering global crypto adoption.