Kraken To Conduct Private Securities Offering
Kraken, a popular American trading platform, plans to conduct a private offering of shares, Finance Magnates reports.
The crypto exchange sent emails to its most active and major users with information about the new investment product. Kraken invited customers to take part in a survey, in which they can express their opinion on this decision of the exchange.
The management of the trading platform emphasizes that the company does not need additional financing. On the one hand, such a decision is caused by the decline in the crypto market. On the other hand, the crypto exchange managed to accumulate large reserves, allowing it to make new acquisitions.
In the email it is indicated that the company estimates the shares for sale at $4 billion, and the minimum amount of investments in securities will be $100,000. Every investor, who wants to acquire assets, will be evaluated for compliance with the exchange’s requirements. Interested clients should respond by mid-December 2018.
The process of private shares offering does not provide for their acquisition by anyone. Instead, the securities are distributed among a certain number of investors. Despite the fact that this offering helps to raise less money than the public one, it is much easier from the legal and organizational point of view.
According to the CoinMarketCap as of December 12, 06:50 (UTC), the Kraken crypto exchange is ranked 28th in terms of trading volume amounting to $78 million over the last 24 hours.
Earlier, Kraken was recognized as one of the most reliable trading platforms, according to a study conducted by Group-IB.