Kraken to Prepare a Private Listing at $4B Valuation

The company sent letters to the largest customers, which told about a new investment feature
12 December 2018   326

The well-known US cryptocurrency exchange Kraken is considering the possibility of a private placement of securities, reports Finance Magnates.

The company sent letters to the largest customers, which told about a new investment opportunity. In particular, Kraken users are invited to participate in an online survey before receiving additional information about private placement.

Representatives of Kraken emphasize that the exchange does not particularly need financing. However, given the bear market and "significant reserves", Kraken is considering various opportunities for new acquisitions.

In letters to customers it is noted that the placement will be carried out with a company valuation of $ 4 billion. At the same time, the minimum amount of investment in Kraken shares is $ 100 thousand.

Kraken also intends to assess each investor for compliance with the criteria for participation in the placement. Interested users must respond to the Kraken offer before December 16th.

Founded in July 2011, the Kraken exchange is currently in 27th place in terms of trading volume.

Private placement involves the distribution of securities among a predetermined number of investors. In case of private placement, no public offer is made to buy securities to anyone.

As a rule, such an issue of securities is easier to organize, it causes less legal difficulties and practically does not require marketing costs. Company also doesn't need to disclose financial and business information to an unlimited number of individuals, including competitors.

On the other hand, as a rule, private placement allows you to collect less money than public.

Kraken to Delist Bitcoin SV

Earlier, exchange's team concluded a users' poll, according to which, 71% of Kraken's community voted for token delisting
17 April 2019   143

As a result of voting among its users, the Kraken Exchange decided to delist the Bitcoin SV (BSV) cryptocurrency, the creator of which Craig Wright was involved in a new confrontation with the Bitcoin community.

Over the last few months, the team behind Bitcoin SV have engaged in behaviour completely antithetical to everything we at Kraken and the wider crypto community stands for. It started with fraudulent claims, escalating to threats and legal action, with the BSV team suing a number of people speaking out against them. The threats made last week to individual members of the community were the last straw. 

Kraken Team

The poll, which aimed to find out the users' opinion about the possible delisting of BSV, Kraken launched on Monday. According to its results, such a move was supported by 71% of more than 70,000 respondents who agreed with the opinion that BSV is a “toxic” asset. 

BSV trading on Kraken will be stopped on May 1. Users are given time until May 15 for the withdrawal of assets.

Earlier, Binance and ShapeShift exchange platform reported on Bitcoin SV delisting. At the same time, OKEx said it would not take such a step.