Kraken eyes $15 billion valuation following completion of $500 million round

Kraken has raised $500 million at a $15 billion valuation, positioning the exchange for a potential 2026 initial public offering (IPO) while continuing to focus on acquisitions.

Kraken plans to go public following $500 million funding

Kraken has reportedly secured $500 million in funding this month at a $15 billion valuation, according to a report from Fortune on Friday.

The report, which cited a source familiar with the matter, stated that the round had no lead investor and was closed on Kraken’s own terms. Participants included investment managers, venture capital firms, and Kraken co-CEO Arjun Sethi, who invested through his Tribe Capital fund.

Sethi reportedly joined as the company’s co-CEO after co-founder Jesse Powell stepped down in 2022 amid a federal investigation into his role at a Sacramento arts nonprofit.

Powell named Dave Ripley as his successor while stepping down, but Kraken announced that Sethi had been appointed co-CEO last year. Sethi is also reportedly responsible for the company's strides over the past year.

Although Kraken has not yet filed an S-1 with the SEC, its recent steps such as enhanced financial disclosures suggest it is preparing to go public.

The exchange, which was founded in 2011, had reportedly raised just $27 million in venture capital until this year. It also generated roughly $411 million in revenue with nearly $80 million in post-EBITDA earnings in the second quarter, according to the report.

Kraken’s reported interest in going public comes as more crypto firms move to the public markets with strong results. Gemini, the latest to debut earlier this month, was over 20 times oversubscribed in its NASDAQ listing, raising $425 million and pushing its market cap above $2.8 billion.

Blockchain-based home equity lender Figure Technology also raised $787.5 million, giving the company a $7.6 billion valuation. Other crypto-related companies that have gone public include Circle, eToro and Bullish.

Meanwhile, Kraken launched tokenized US stocks (xStocks) earlier this year. xStocks provide price exposure to popular US stocks like Apple, Tesla and GameStop, but they do not confer shareholder rights such as voting.