Major U.S.-based crypto exchange Kraken is reportedly in talks for a new funding round that could double the company’s valuation to $10 billion, or more.
The raise was reported by Bloomberg, who cited anonymous sources claiming Kraken is in discussions with top investors including, Fidelity, Tribe Capital, and General Atlantic.
One of the sources estimated Kraken’s valuation could soar as high as $20B billion depending on demand.
In 2019, Kraken used the crypto-friendly investment platform Bnk to the Future to raise $13.5 million from more than 2,000 participants at a $4 billion valuation.
The news comes amid anticipation for Coinbase’s direct listing IPO, with Coinbase’s market value recently rocketing to nearly $100 billion based on secondary trade in privately-held shares.
According to crypto market data aggregator CoinMarketCap, Kraken processed nearly $2 billion in volume over the past 24-hours, while Coinbase hosted $3.85 billion over the same period.
The news about the reported raise comes less than one week after many of its users threatened legal action over the violent Feb. 22 flash crash that saw Ether change hands for just $700 on Kraken while rival exchanges had prices above $1,300. The pricing triggered cascading liquidations on the platform.
Despite calls for refunds from affected margin traders, Kraken has indicated it will not refund users for losses or roll back trades.
Feb. 22 also saw Kraken post a new record for daily volume, hosting more than $4 billion worth of spot trades in 24 hours.