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US bitcoin and crypto exchange Kraken has raised over $6.5 million in a matter of days as part of a new equity sale, data has revealed.
Kraken Fundraiser Hits $6.55M
According to a fundraising page on BnkToTheFuture, which Kraken is using to gather the funds, investors have already contributed âŹ5.87 million ($6.55 million) of the total âŹ9.13 million ($10.2 million) target.
In doing so, Kraken has thus passed its minimum threshold of âŹ5,552,073 as of May 21.
âWe are always looking for ways to democratize access to our equity, allowing more of our valued clients to become valued investors,â officials commented on social media.
âTo that end, we partnered with (BnkToTheFuture) to create an opportunity to invest in Kraken[.]â
CEO Jesse Powell, who was responsible for the BnkToTheFuture pitch, described Kraken as one of the top 5 exchange platforms worldwide for âlegitimateâ volume, with a client base of around 4 million.
Its trade volume in 2018 â a bearish year for cryptocurrency overall â totalled $85 billion, while Kraken is âconsistently rankedâ as the most secure exchange, he added.
A Bitcoin Exchange Renaissance
The move comes as various major exchanges have begun performing fundraising activities of their own, albeit in varying formats.
As Bitcoinist reported, Bitfinex, which lost control of funds worth $850 million last year, since opted to conduct a so-called âinitial exchange offeringâ (âIEOâ), during which it sold its new LEO tokens to private investors.
Despite criticism about its operations and an associated legal case, Bitfinex was also easily able to hit its target, hitting $1 billion in investments in a matter of days.
Elsewhere, corporate moves are also netting significant capital for the exchange sector. Last month, a Japanese blockchain fund invested $200 million in the operator of South Korean exchange Bithumb.
Meanwhile, Bitstamp and fellow South Korean platform Korbit could soon come under the direct ownership of Disney Corp. should a separate equity deal involving a giant $13.2 billion sum go ahead.
The enthusiasm is unsurprising amid the turning tide on cryptocurrency markets in 2019. While 2018 even produced losses for some exchanges â such as that operated by Japanâs GMO Internet â record on-chain volume in May provides ample opportunity for industry players to expand their profile.
In February, when Bitcoin price 00 still lingered around $3500, statistics nonetheless revealed that the deposits on the five biggest exchanges combined still equalled less than 1 percent of those in JPMorgan Chase.
What do you think about Krakenâs equity fundraiser? Let us know in the comments below!
Images via Shutterstock, Bitcoinist archives
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.