Cryptocurrency exchange Kraken is reportedly seeking $500 million in new funding, potentially valuing the company at $15 billion, according to a report by The Information. This move comes as Kraken eyes a possible initial public offering (IPO), capitalizing on favorable regulatory developments and a resurgence in the crypto market.
The $15 billion valuation marks a significant increase from Kraken’s previous valuation of approximately $11 billion in 2022. Bloomberg reported in March that Kraken is aiming for a public debut as early as the first quarter of 2026, anticipating a more accommodating regulatory environment.
Kraken’s potential IPO follows a recent wave of successful public offerings from other trading platforms and crypto-related companies. Circle Internet Group, the issuer of USDC, completed a $1 billion public offering in early June and has seen its stock price increase substantially. Trading platform eToro (ETOR) debuted on the Nasdaq in May and has also experienced gains since its IPO.
Coinbase (COIN), which went public in 2021, has seen its stock surge by 50% since the beginning of the year, while Robinhood Markets (HOOD), another platform offering crypto trading, has gained 162% in the same period. These gains reflect renewed investor interest in the crypto sector as Bitcoin has reached new highs.
Kraken’s potential public listing is also influenced by a shift toward more crypto-friendly regulations and the dismissal of regulatory lawsuits against crypto firms in the United States. The Securities and Exchange Commission (SEC) dropped its lawsuit against Kraken in March. Other firms, including Ripple, Gemini, Galaxy Digital, Grayscale, and Bullish, have also signaled plans to go public.
According to CoinGecko, Kraken currently facilitates around $1.37 billion in daily trading volume and lists over 1,100 trading pairs. While this is about half the volume of its main US-based rival, Coinbase, which has $2.77 billion and 448 trading pairs, Kraken’s trade volume has remained relatively stable.
In June, Kraken launched a peer-to-peer payments app called “Krak,” enabling users to send both fiat and cryptocurrency across borders. Additionally, the company announced its ability to expand its services across the European Union after securing a license under the Markets in Crypto-Assets (MiCA) framework in June.
