US-based cryptocurrency exchange Kraken, has successfully closed a $500 million funding round, achieving a valuation of $15 billion, as reported by Fortune. This significant milestone comes as the company gears up for its anticipated initial public offering (IPO), which is expected to take place next year.
Kraken’s Valuation Rises To $15 Billion
In July, The Information reported on Kraken’s intentions to raise this substantial amount, and recent updates confirm that the funding round was finalized this month without a primary investor.
Instead, Kraken set the terms of the deal, including the valuation figure. Among the contributors to this funding round were various investment managers and venture capitalists, notably including the exchange co-CEO Arjun Sethi’s Tribe Capital, as well as Sethi himself in a personal capacity.
This latest valuation marks a notable increase from the $11 billion the exchange reached in 2022, when it raised an undisclosed sum. Kraken has demonstrated strong financial performance in recent years, reporting $1.5 billion in revenue for 2024, with an additional $472 million generated in the first quarter of 2025.
Currently, the exchange handles an impressive daily trading volume of $1.37 billion, making it the second largest in the United States after Coinbase (COIN), which already went public back in April, 2021.
Crypto IPO Boom
The crypto landscape has experienced a notable shift this year, as investor sentiment has evolved from a period of exuberance in 2021 to a more cautious approach.
However, the appetite for public offerings among crypto firms has resurged, driven by favorable regulatory developments. This shift has sparked a wave of IPO activity in the cryptocurrency sector with Circle (CRLC), and Bullish (BLSH), capitalizing on the rising interest toward crypto stocks.
In addition to its funding success, Kraken is aggressively expanding its services beyond traditional cryptocurrencies. The company has ventured into tokenized stocks, positioning itself at the forefront of this emerging market.
Furthermore, it recently acquired the US-regulated retail futures trading platform NinjaTrader for $1.5 billion, with plans to extend its reach into the UK, Europe, and Australia.
Earlier in the year, Kraken also acquired a Cyprus-based company to secure a Markets in Financial Instruments Directive (MiFID) license, enabling it to offer derivatives across the European Economic Area (EEA).
On the political front, Kraken has committed to donating $2 million to two pro-crypto political action committees (PACs), reinforcing its dedication to advocating for privacy and innovation rights in the United States.
Co-CEO Arjun Sethi emphasized the ongoing battle for the future of cryptocurrency in the US, noting a significant shift in the political climate from “fear to understanding” throughout 2025.
Featured image from Bloomberg, chart from TradingView.com
