Kraken Secures $800M Funding for Expansion Plans as Valuation Soars to $20B
Crypto giant Kraken secures massive funding from Wall Street heavyweights
US based crypto exchange Kraken has raised $800 million in fresh funding, lifting its valuation to around $20 billion and giving the company new fuel for global expansion. The capital was raised in two tranches, with the second including a $200 million strategic investment from US market maker Citadel Securities at the $20 billion valuation.
Alongside its equity stake, Citadel Securities is entering a strategic partnership with Kraken to share liquidity, risk management and market structure expertise. The first tranche of the round was backed by Jane Street, DRW Venture Capital, HSG, Tribe Capital and a significant personal commitment from the family office of Kraken co CEO Arjun Sethi.
Kraken said the new capital will be used to scale its operations worldwide, deepen its presence in regulated markets and broaden its product line up through both in house development and targeted acquisitions. The exchange already serves customers in multiple regions but plans to push further into Latin America, Asia Pacific, Europe, the Middle East and Africa.
The raise has reignited long running speculation over a potential Kraken IPO. The exchange previously explored going public in 2021, but unlike rival Coinbase, it has yet to list its shares on a public market.
Sethi recently told Yahoo Finance that Kraken is under no pressure to rush an IPO, stressing that the firm is financially sound and well capitalized through private funding. The new $800 million injection is likely to strengthen that position, giving Kraken more flexibility to grow privately while keeping the option of a future public listing on the table as market conditions evolve and investor appetite for crypto equities improves worldwide.
