Kraken associates with SPAC to seek potential acquisition targets, with the target company's valuation possibly reaching up to 10 billion dollars

According to market news, the cryptocurrency exchange Kraken's associated special purpose acquisition company (SPAC) KRAKacquisition Corp. has announced that it has begun searching for potential acquisition targets, with a target company valuation of up to $10 billion. It is reported that this SPAC is broadly examining crypto-native enterprises, including companies in the fields of stablecoins, tokenization, DeFi, and payments.

KRAKacquisition previously completed a $345 million IPO and has two years to find acquisition targets. It stated that the $10 billion figure is merely a rough upper valuation limit, and the actual valuation of target companies may be closer to $2 billion, but 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 also advancing its listing plans.

The exchange had previously submitted registration documents to the U.S. Securities and Exchange Commission confidentially and completed approximately $800 million in financing last year, with a valuation of about $20 billion. KRAKacquisition is also seen as a strategic investment tool for Kraken, forming a closer economic connection with the acquired companies through equity holdings.