Hassan Maishera
TL;DR
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Kraken has raised $800 million in two funding rounds led by major institutional investors.
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The company is now valued at $20 billion as it prepares for an IPO.
Kraken Raises $800M from Institutional Investors
Cryptocurrency exchange Kraken announced on Tuesday that it had raised $800 million across two different tranches over the past two months. Thanks to this latest development, the company is now valued at $20 billion ahead of a possible initial public offering.
According to the crypto exchange, the primary funding round was led by institutional investors, including Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital, along with a significant commitment from Kraken co-CEO Arjun Sethi's family office. An agreement for a subsequent $200 million strategic investment from Citadel Securities.
While commenting on the funding round, Citadel Securities President Jim Esposito stated that,
"We're excited to support Kraken's continued growth as it helps shape the next chapter of digital innovation in markets. Citadel Securities’ collaboration with Kraken will include differentiated liquidity provision, risk management expertise, and market structure insights."
This latest development comes as Kraken has been expanding its global operations via acquisitions as it prepares for an IPO in 2026. The crypto exchange recently acquired Small Exchange for $100 million to launch a U.S. derivatives trading platform.
In September, Kraken also completed the acquisition of Breakout, a Tampa, Florida startup that backs traders with capital. This latest acquisition now allows Kraken to enter the proprietary trading market.
Last year, Kraken restructured with Tribe Capital co-founder Arjun Sethi taking the reins as co-CEO alongside David Ripley. It is currently one of the leading crypto exchanges in the world, as it generated $40.5 billion in trading volume last month.
While commenting on the investment rounds, Sethi stated that,
"This investment represents long-term conviction in Kraken's mission to build trusted, regulated infrastructure for the open financial system. Our focus has always been straightforward: to create a platform where anyone can trade any asset, anytime, anywhere. The caliber of our new investors reflects both the scale of the opportunity ahead and the depth of alignment around how this infrastructure should be built."
