British investment trust, RIT Capital Partner has announced that the company has acquired a stake in the Kraken cryptocurrency exchange. Formerly named the Rothschild Investment Trust, RIT Capital holds ties to the prominent Rothschild banking family of England through Chairman Jacob Rothschild.
According to an official announcement, RIT Capital had invested in Kraken last month. In a note to investors, dated April 12, the investment company referred to a webinar hosted by Numis Securities last month where investors were told about the stake.
The announcement further made reference to the news of Kraken considering going public through a direct listing in 2022:
“According to media reports, Kraken is considering going public through a direct listing in 2022, after seeing record trading volumes and new clients amid a surge in the price of Bitcoin.”
Even though the amount of RIT Capital’s investment was not disclosed, the firm remains bullish on Kraken amid the success of its rival company Coinbase recently going public on the Nasdaq stock exchange.
“According to reports, talks have been held in discussions with firms including Fidelity, Tribe Capital, and General Atlantic. Kraken CEO Jesse Powell said this is being delayed in order to evaluate how Coinbase's IPO performs.”
RIT Capital Partners was founded in 1961 and has a current market capitalization of more than $5.28 billion. The trust went public on the London Stock exchange in 1988. Its share price currently sits at around $3,300.
This is not the first time, the investment firm has ventured into the world of crypto. By the end of last year, the U.K.-based trust backed a $142 million investment round for stable coin issuer Paxos.
The trust is managed by J. Rothschild Capital Management Limited (JRCM) and was chaired by Jacob Rothschild. In 2019, he stepped down from his role as the chairman and director for JRCM.