TechFlow News, March 25 — Bloomberg, citing people familiar with the matter, reported that cryptocurrency exchange Kraken is exploring raising up to $1 billion in debt financing to pave the way for a potential initial public offering (IPO).
The sources said Kraken is working with Goldman Sachs Group and JPMorgan Chase on the plan. The talks are still at an early stage, and the two investment banks have begun discussions with other banks and direct lenders.
Kraken intends to use the proceeds from this fundraising to drive company growth, rather than for day-to-day operations. The minimum fundraising target is $200 million, though the amount could go as high as $1 billion.
Another person familiar with the matter said that in addition to debt financing, Kraken is also considering raising capital through equity financing. However, no final decisions have been made, and the size and terms of any funding could still change.
Representatives for Kraken, Goldman Sachs, and JPMorgan Chase declined to comment on the matter.
