Kraken Acquires Crypto facilities For $100 Million To Enhance Crypto Futures Trading
Kraken users will soon be able to trade spot and enjoy exposure to future price movements of cryptocurrencies in one trading interface. Customers will also be able to trade cryptocurrency futures on nights as well as over the weekends and extended periods. The improvements would be as a result of the crypto exchange completing the acquisition of startup Crypto Facilities.
Crypto Facilities Acquisition
The company is paying $100 million to acquire Crypto facilities marking the biggest deal in the crypto sector in 2019. Chief Executive Officer, Jesse Powell expects the deal to accelerate Kraken roadmap into becoming the go-to marketplace for trading cryptocurrencies.
Under the terms of the agreement, Crypto Facilities, CEO Timo Schlaefer is to retain his position under the combined company. Crypto Facilities is to continue operating as an independent entity but within its parent company Kraken.
Crypto Facilities should expand Kraken operations in the U.K as it is registered under the U.K Financial Conduct Authority. The authority has already approved the merger. In addition to providing cryptocurrency trading services, the U.K startup also provides data to the CME CF Bitcoin Reference Rate.
Powell expects the acquisition to help Kraken become a powerhouse in the cryptocurrency sector. The ultimate goal is to come up with the most liquid futures exchange that will elicit interest even from institutional investors.
According to the Chief executive officer, the acquisition perfectly aligns with Krakens bid to address all the needs of cryptocurrency exchange customers. The company is focusing on this set of customers as part of an ongoing funding round.
The cryptocurrency exchange expects the funding round to value the company at about $4 billion. Kraken intends to use the new finances to carry out additional acquisitions in addition to the Crypto facilities coup. Plans are already underway to complete one or two more deals before the end of the year.
Kraken wave of investments come as a surprise, given that sentiments in the crypto space have turned sour in recent months. A good number of cryptocurrencies are a shadow of their glory days having shed a substantial amount of market value. Investor’s sentiments have also hit all-time lows.