Kraken, the second most important crypto exchange on the American market, is expected to go public in Q2/Q3 2021, following the listing of its competitor Coinbase, in April this year.
Kraken is a marketplace for digital assets where buyers, sellers, traders and speculators come together to exchange cryptocurrencies such as Bitcoin, Ethereum, Litecoin and Ripple against national currencies like USD, EUR, CAD and JPY.
It was founded in 2011 by Jesse Powell, a former video gamer who used to sell virtual items and currencies for online games.
Kraken was launched in September 2013, after being tested and developed for two years. Major investments in Kraken were made by Hummingbird Ventures in 2014 and SBI Investment in 2016. In February 2019 Kraken reached a valuation of $4 billion. As of today, Kraken is the 3rd best cryptocurrency exchange according to CoinMarketCap, with 60 coins and 7 fiat currencies available on the exchange and a volume of trades of around $1.6B.
From the dataset of the Kraken Daily Market Report it is possible to have an idea of the volume of trades on the platform. The total volume of spot trades was $1.8B, with a last-30-days average of $1.79B. Moreover, the five most traded currencies were Bitcoin, Ethereum, Tether, Polkadot and Ripple. For derivatives, according to CoinMarketCap’s chart, Kraken is only the 13th platform for volumes ($562 million on the 4th March 2021), while it is the 3rd for spot contracts.
In the table below volumes of trades with the 15 main currencies for the 16th of February are displayed. (source: Daily Market Report Kraken)
Kraken’s Total Revenue disclosed on the company’s Income Statement for the fiscal year starting 31st Dec 2019 and ending 31st Dec 2020 was £ 0.858 B.
Although the company is engaged in Cryptocurrencies Trading, it is to be noted that Kraken earns fees on transactions, regardless of whether crypto values go up or down.
The company’s current capitalisation ranges between $13 and $16 bn. Although it is difficult to find shares on the secondary market, small stacks (deriving primarily from employees anxious to monetise part of their assets ahead of the IPO) are becoming available.
From March 2021 to date, the share prices on the secondary market have risen from approx. $50 per share to $85 per share.
Typically, these are contained in unlisted, regulated vehicles, which hold the shares segregated. Investors can therefore purchase shares in the vehicle, just as they would buy shares in an unlisted mutual fund; at the time of Kraken’s listing, the portion of freely transferable shares will remain in the vehicle in the form of segregated shares and then be transferred to the investor’s securities portfolio.
The positive anomaly with Kraken’s shares – when compared to other pre-IPOs, is that shares purchased through these vehicles on the secondary market are in extremely high demand and therefore very liquid, allowing investors to re-sell their package even before the Nasdaq listing.
Below is a comparison with Kraken’s competitor Coinbase, which recently went public on Nasdaq.
Enry’s Island is involved in the placement of Kraken’s stocks in the secondary market, ahead of the IPO this year.
Enry’s Island is supported by one of the market’s best independent analysis firms for all that concerns financial analysis, information and insights. It also makes use of HUI to manage all of its activities in a transparent and efficient manner.
Through HUI, companies’ operational KPIs are visible in real time, allowing investors to manage their portfolios and invest with the back-up of live data which rivals that available on publicly-listed entities.
To find out more Kraken’s insights, analysis, stats and to get access to available shares on the secondary market, drop us a note at firstname.lastname@example.org