Kraken Raises $800 Million Ahead of 2026 IPO
Crypto exchange Kraken secured $800 million in funding over two months. The new capital values the company at $20 billion. This strengthens Kraken’s position before its planned IPO in 2026.
The funding came in two parts. The first tranche raised $600 million from institutional investors. These include Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, Tribe Capital, and the family office of Arjun Sethi. Kraken confirmed this round publicly for the first time.
The second tranche was a $200 million strategic investment from Citadel Securities, led by Ken Griffin. This deal was made at the $20 billion valuation.
Kraken Co-CEO Arjun Sethi said, “This investment represents long-term conviction in Kraken’s mission to build trusted, regulated infrastructure for the open financial system.” He added the goal is to create a platform where “anyone can trade any asset at any time.”
Citadel Securities Enters Crypto Market
Citadel Securities’ investment marks a notable shift toward digital assets. The firm had avoided crypto markets due to past regulatory uncertainty. Now, Citadel plans to assist Kraken with liquidity, risk management, and market structure.
Jim Esposito, President of Citadel Securities, said the company joined the funding round to support Kraken’s growth in the evolving digital-asset market.
Sethi pointed out Citadel Securities has shaped market structure over 25 years by improving efficiency and transparency for investors.
Kraken’s Growth and Expansion Plans
Kraken began seeking new funding in July 2025. It targeted $500 million at a $15 billion valuation. By September, it closed this round without a lead investor, drawing support from investment firms, venture funds, and Tribe Capital.
The exchange reported revenue of $472 million in Q1 2025, a 19% increase from the prior year. Last month, Kraken processed $40.5 billion in trading volume on USD-supported exchanges.
Kraken has also expanded through acquisitions. It bought Small Exchange for $100 million to build a U.S. derivatives platform. Earlier this year, Kraken acquired NinjaTrader for $1.5 billion.
The new funding will help Kraken grow internationally and advance its payments and trading products. These moves aim to fortify the company ahead of its 2026 IPO.
