Crypto Exchange Kraken Ponders Private Offering Over Acquisition Opportunities

Popular cryptocurrency exchange Kraken is reportedly mulling over a private offering, in which it would sell some of its shares to some of its most prominent clients, with the minimum investment being of $100,000.

According to a report published by Finance Magnates, Kraken has been sending out emails to some of its clients inviting them to fill out a survey before giving them additional information. In the emails, Kraken makes it clear it isn’t needing financing, but sees acquisition opportunities given its “significant reserves” and the crypto bear market.

Kraken is reportedly listing its shares at a $4 billion valuation. The email reportedly 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.

More details about the investment opportunity are set to be provided to the clients that fill out the survey until December 16. The company is seemingly cheaper than others in the space, but as Finance Magnates points out this may be because its service was filled with glitches during last year’s bull run.

Reports have suggested suspicious Tether (USDT) trading has been observed on Kraken, as some critics suggest the stablecoin was used to pump bitcoin’s price last year, to help it reach its near $20,000 all-time high.

Earlier this year the company was affected by rumors of a security breach and staff layoffs. According to Bloomberg, the company ended up confirming it consolidated its staff, but denied hackers accessed its wallets.

Recently, as CryptoGlobe covered, a lawsuit filed by United American Corp, a Florida-based telecommunications and IT firm, against Kraken, Bitcoin.com, and Bitmain, claims these have “colluded” to manipulate the BCH network.  Kraken, as covered, has claimed Bitcoin SV is an “extremely high risk” investment.

Kraken has in the past left New York over the state’s controversial ‘BitLicense’. Jessie Powell, Kraken’s CEO, fired back at New York’ Attorney General after its regulators kept going after it this year.

Crypto-Friendly Digital Bank Revolut Raises $500 Million at $5.5 Billion Valuation

Francisco Memoria

The cryptocurrency-friendly digital bank Revolut has raised $500 million in a Series D round of funding that’s valuing the company at $5.5 billion. Over the years, Revolut raised $836 million.

According to TechCrunch, the venture capital firm TCV is leading the round and other existing investors are also participating in it. Revolut hasn’t shared the names of these firms, but DST Global, Index Ventures, and Balderton Capital have all invested in the firm.

Revolut is a digital bank that’s seemingly looking to help replace traditional bank accounts with an app that helps users manage their finances. Using the Revolut app it’s possible to send, spend, and receive money. It also issues a debit card for its users.

The fintech firm has added various features, including the ability to buy stocks or invest in cryptocurrencies. In March 2019, as CryptoGlobe reported, it started offering stop orders for trading major cryptos like BTC, ETH, XRP, LTC, and BCH.

The $500 million are set to be used to improve the user experience for Revolut’s 10 million users, as well as its revenue. Specifically, the digital bank is looking to offer its users lending services, and it has already started doing so as in the U.K. it offers savings vaults. Nik Storonsky, Revolut’s co-founder and CEO, said:

Going forward, our focus is on rolling-out banking operations in Europe, increasing the number of people who use Revolut as their daily account, and striving towards profitability.

While the firm doesn’t share specific number when it comes to its transaction volumes or customers, TechCrunch reports its number of users grew by 169% in 2019, while daily active customers grew by 380% in the same period.

Revolut is currently available in the U.K., Europe, Singapore, and Australia. It’s focusing on launching in the U.S. and Japan.

Featured image via Pixabay.