Popular cryptocurrency exchange kraken has revealed that it paid “nine figures” to secure the ownership of the British trading firm called Crypto Facilities. Kraken, during an interview, disclosed that the $100 million funding round facilitated by its larger customers is almost complete.
The purchase of Crypto Facilities has put Kraken in the history books as the first crypto exchange to provide both trading options of spot and futures in currencies like XRP, Ethereum and Bitcoin. Kraken withheld the actual price of the deal from the public.
Jesse Powell, the CEO of Kraken, revealed that the company has already integrated the back-end operations of Crypto Facilities and the outcome is a single platform that will cater to the trading needs of users of both services. Its U.S customers, however, will not be able to access futures trading.
Powell said that the deal, which had been ongoing for ten months, will not only attract institutional clients, but will also increase revenues. This deal will enable Kraken to become a one-stop platform for trading.
$100 Million Fundraising Supported By Customers
The San Francisco-based company Kraken made an unusual move this time by turning to its larger customers instead of the traditional investors and venture capitalists who supported its early funding rounds, to make its recent $100 million fundraiser a success. According to reports in December, Kraken emailed its clients to raise funds, though the actual amount to be raised was undisclosed, to increase the value of the company to $4 billion.
Powell stated that there was no need for Kraken to register the funding round with the SEC because all the investors that were approached were accredited and others had an exemption coverage. He added that a lot of the new investment came from foreign countries.
Powell expressed that his vision still matches that of Bitcoin’s founder Satoshi Nakamoto, a world where people will have total control of their money without government constraints.
“If you asked me seven years ago, I would have said Bitcoin would take over the world by 2015,” he stated. “I still think it’s going to take over.”
As at February 2019, the trading price of Bitcoin is about $3,400, which is a long way from its December 2017 trading price of almost $20,000. Powell admitted that the lack of adequate use cases for cryptocurrencies have led to its low adoption but opined that things could change for the better once payment platforms accept digital currencies and society becomes cashless.