In a move that would significantly cement the position of the bitcoin and cryptocurrency exchanges as large corporations, Kraken, a US-based exchange, is considering going public via direct listing next year, according to CNBC.
The report cited “Record Trading Volume and New Customers as Bitcoin Price Spikes” as motivating Kraken’s potential listing, and it is likely that the success of Coinbase’s direct listing is also motivating.
With a user base of more than six million, Kraken is one of the world’s largest cryptocurrency exchanges. According to available data from CoinMarketCap, it currently ranks fourth on the list of the largest exchanges by trading volume.
In a recent interview with CNBC, the company’s CEO and founder, Jesse Powell, revealed that it was able to take advantage of the recent surge in Bitcoin price. Powell said the profits the company had made in February had exceeded the prior year’s total profits.
Bitcoin hit a record price of over $ 60,000 in mid-March. Analysts and traders alike have attributed the price recovery to the entry of institutional investors into the industry. During this time, institutions like Tesla, MicroStrategy, and many others have made large investments in BTC.
Recently, Kraken’s main competitor in the US, Coinbase, announced that it would go public in a blockbuster direct list slated for next week. This listing could help increase the company’s value up to $ 100 billion. Coinbase recently announced record quarterly sales of $ 1.8 billion in the first quarter of 2021.