Kraken Raises $500 Million at $15 Billion Valuation
Kraken has raised $500 million in a funding round this month. The company is now valued at $15 billion. This funding supports Kraken’s plan to go public, possibly in 2026. The exchange also aims to continue growing through acquisitions.
No Lead Investor in Funding Round
The recent funding round had no lead investor. Various firms and investors took part. These included investment managers, venture capital firms, and Kraken co-CEO Arjun Sethi. Sethi invested through his Tribe Capital fund.
Arjun Sethi became co-CEO last year after co-founder Jesse Powell stepped down in 2022. Powell left amid a federal investigation related to a Sacramento arts nonprofit. Dave Ripley was named Powell’s successor before Sethi’s appointment.
Kraken Prepares for IPO and Expands Services
Kraken has not yet filed an S-1 with the SEC. However, the company has improved its financial disclosures, signaling IPO preparation. Founded in 2011, Kraken had raised only $27 million before this year.
In the second quarter, Kraken earned about $411 million in revenue and nearly $80 million in post-EBITDA earnings. The company’s IPO plans come as other crypto firms enter public markets. For example, Gemini recently raised $425 million in its NASDAQ debut.
Kraken also launched tokenized US stocks called xStocks earlier this year. These tokens track prices of stocks like Apple, Tesla, and GameStop. However, xStocks do not give shareholders voting rights.
