Kraken has completed a $500 million funding round with a valuation of $15 billion, marking a milestone that positions the cryptocurrency exchange on the path toward its targeted initial public offering (IPO) in 2026.
The development comes at a time when several crypto companies are planning to go public, with Circle, Gemini, and Bullish debuting earlier this year.
According to a report by Fortune, the capital raise was executed through a self-structured round that included participation from Tribe Capital, CEO Arjun Sethi, and other institutional investors. The company has now raised a total of $527 million to date as it prepares for its planned IPO in 2026.
Kraken’s Developments
Founded in 2011, Kraken has become a favored platform for professional and institutional traders. The company reported $411 million in revenue in the second quarter and nearly $80 million in profit after EBITDA.
The company has also expanded through acquisitions and new products. Earlier this year, Kraken acquired NinjaTrader for $1.5 billion and launched xStocks, which tokenizes shares of companies like Apple and Tesla. CEO Arjun Sethi called the deal with NinjaTrader the largest ever combining TradFi and crypto, outlining a vision of merging the two on a single platform.
Sethi also spoke about Kraken’s broader vision, stating to Fortune that the progression from stablecoins to tokenized assets and now tokenized stocks is part of the company’s plans to make financial markets more accessible. He added that the platform is designed with professional traders and institutions in mind, highlighting its liquidity and reliable infrastructure as key advantages for high-volume clients.
The IPO Race for Crypto Companies Heats Up
The planned listing in 2026 comes at a time when crypto companies are rapidly going public. After a year-long freeze on IPO activity following the valuation boom of 2021, the market has reopened this year with strong demand. Stablecoin issuer Circle recorded one of the largest first-day jumps in corporate IPO history, while Gemini and Bullish also successfully debuted.
For Kraken, the decision to wait until 2026 could test investors’ patience, especially if market conditions change. Analysts point to signs that stock prices are overvalued and warn that newly listed digital asset companies may struggle with business fundamentals.
Circle is already facing revenue pressure due to falling interest rates, while Gemini and Bullish have smaller user bases than competitors like Kraken and Coinbase. A decline in cryptocurrency prices could further jeopardize valuation estimates.
Despite these concerns, Fortune noted that the company’s diversified business model and growing presence outside its core European and UK markets leave it in a better position than most competing firms to weather changes.
