Kraken Raises $500 Million Ahead of 2026 IPO
Crypto exchange Kraken has secured $500 million in new funding as it prepares for a public listing in 2026. The funding round closed this month without a lead investor, according to a Fortune report on September 25. Kraken set the terms, with participants including investment managers, venture capitalists, and Tribe Capital, led by CEO Arjun Sethi.
Founded in 2011, Kraken has now raised a total of $527 million, including its initial $27 million investment. The exchange attracted investors with strong financial results. In Q2, Kraken generated $411 million in revenue and nearly $80 million in post-EBITDA earnings. This made Kraken the second most valuable private crypto exchange, behind Coinbase.
Strategic Growth and New Products
Kraken has expanded rapidly through acquisitions and new offerings. Earlier this year, it acquired NinjaTrader in a $1.5 billion deal, adding two million customers. The exchange also launched “xStocks,” a product that enables trading of traditional stocks on the blockchain. This connects traditional finance with crypto markets.
CEO Arjun Sethi said, “Our model’s built around pro traders and institutions. Features like Kraken Pro, our robust API, and advanced interfaces make us a destination for funds and high-volume clients.”
IPO Timing Amid Market Uncertainty
Several crypto firms, including Circle, Gemini, and Bullish, went public earlier this year. Circle experienced one of the largest same-day IPO gains in corporate history. However, analysts warn the stock market may be overvalued. A downturn could hurt new crypto listings.
Circle’s stablecoin revenue is already declining as interest rates fall. Gemini and Bullish face challenges with smaller customer bases. Kraken’s decision to delay its IPO until 2026 is both risky and strategic. Investors may be uneasy about the wait. Still, Kraken’s strong business model and diverse revenue streams could help it navigate market volatility.
Kraken’s new funding strengthens its position as a leading global exchange. The success of its IPO will depend largely on market stability next year.
