Kraken-affiliated SPAC seeks potential acquisition targets, with target company's actual valuation nearing $2 billion

According to reports, cryptocurrency exchange Kraken-affiliated Special Purpose Acquisition Company (SPAC) KRAKacquisition Corp. has announced the initiation of a search for potential acquisition targets, with the highest valuation of the target company reaching $10 billion. The SPAC is reportedly exploring a wide range of crypto-native companies, including stablecoins, tokenization, DeFi, and payment-related firms. KRAKacquisition had previously completed a $345 million IPO and has two years to find an acquisition target. While it stated $10 billion as a rough valuation ceiling, the actual valuation of the target company may be closer to $2 billion, reflecting the company's aim to provide a pathway for small to medium-sized enterprises to enter the public market.

Meanwhile, Kraken itself is also advancing its plans for an IPO. The exchange had previously submitted registration documents to the U.S. Securities and Exchange Commission confidentially and raised approximately $800 million last year, with a valuation of around $20 billion. KRAKacquisition is also seen as a strategic investment tool for Kraken, forming a closer economic link with the acquired companies through equity holdings. (Decrypt)

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