Svmuu News: Crypto exchange Kraken's affiliated special purpose acquisition company (SPAC), KRAKacquisition Corp., announced it has initiated a search for potential merger and acquisition targets. The target company's valuation could reach up to $10 billion. It is reported that the SPAC is extensively evaluating crypto-native enterprises, including companies in related fields such as stablecoins, tokenization, DeFi, and payments. KRAKacquisition previously completed a $345 million IPO and was granted two years to find a merger target. It stated that the $10 billion figure is merely a rough upper valuation limit, and the target company's actual valuation is likely closer to $2 billion. However, this range reflects the company's desire to provide a pathway for small to mid-cap companies to enter the public market.
Meanwhile, Kraken itself is advancing its own listing plans. The exchange previously confidentially submitted registration documents to the U.S. Securities and Exchange Commission and completed a financing round of approximately $800 million last year, valuing the company at around $20 billion. KRAKacquisition is also seen as Kraken's strategic investment vehicle, aiming to form closer economic ties with acquired companies through equity holdings. (Decrypt)