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RIT Capital Partners Acquires Stake in Crypto Exchange Kraken

RIT Capital Partners Acquires Stake in Crypto Exchange Kraken

Major London-based investment trust, RIT Capital Partners, advocated that the company have acquired a stake in leading crypto exchange Kraken. Established in 1961, RIT Capital is an important investment trust with over $5 billion in market capitalization. As per the official announcement, RIT Capital invested in Kraken last month. The British firm referred to Kraken as one of the biggest crypto exchanges globally, with over 6 million clients.

However, RIT Capital did not disclose the amount invested. It seems that the firm is bullish on Kraken amidst the success of its prominent component Coinbase, indicating its “quarterly revenue of $1.8bn in the Q1 2021” and it’s public listing on April 14. The trust notes the impact of its investment in Kraken. It states that Kraken will enhance in the light of discussions over a new fundraising round. Moreover, it will increase its valuation to a reported price scale between $10 to $20 billion.

RIT Capital Partners has a current market cap of approximately $5 billion. The trust went public on the London Stock exchange in 1988, and its share price is recently sitting at around $3300. Previously named Rothschild Investment Trust, it maintains ties to the Rothschild banking family of England via Chairman Jacob Rothschild. This is not their first attempt into the crypto world. In December 2020, the U.K.-based trust supported a $142 million investment round for Paypal’s crypto associate and stablecoin issuer Paxos.

Kraken Exchange to go Public in 2022

Moreover, the California-based crypto exchange Kraken has been in discussions with investors to allow the firm to go public through a SPAC at a value of $10 million. Nevertheless, the exchange has currently delayed the plan as it attempts to raise fresh capital that would value the firm at double the cost. Further, the exchange is planning to go public in 2022 via a direct listing.

Kraken is not the only crypto exchange that is intending to go public for worldwide expansion. Various other digital exchanges are planning for a direct listing in the coming years. Moreover, Coinbase has officially commenced the public listing of crypto exchanges. The U.S.-based digital exchange went public last week and got a reference price of $250 for COIN shares. The shares of the digital exchange hit an ATH (all-time high) of almost $420 on its appearance but noticed a correction later. COIN stock closed at $311 yesterday.

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