United States-based cryptocurrency exchange Kraken is reportedly considering a funding round to raise more than $100 million for the firm ahead of a potential initial public offering (IPO).

According to a June 6 Bloomberg report citing people familiar with the matter, Kraken was looking at a funding round expected to raise more than $100 million by 2025. The exchange reportedly said it was “always exploring strategic paths” toward global crypto adoption but did not specifically comment on a potential IPO.

Kraken is facing a civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in November 2023. The regulator alleged Kraken operated as an unregistered exchange and “made a business decision to reap hundreds of millions of dollars from investors” in violation of U.S. securities laws.

Related: Kraken counters SEC’s legal interpretation in dismissal motion

In 2021, Coinbase became the first crypto exchange to go public in the United States, listing shares of its stock on the Nasdaq. Before Coinbase’s IPO, Kraken said if it pursued a public offering, it would do so through a direct listing and not a special-purpose acquisition company.

Even facing scrutiny from the SEC, stock trading app Robinhood announced plans to acquire crypto exchange Bitstamp in a $200-million deal. If regulators approve the agreement, it could be finalized in the first half of 2025.

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