Kraken, one of the longest-standing cryptocurrency exchanges globally, has raised a $500 million funding round that gives the company a $15 billion valuation.
The financing, which closed this month, did not have a lead investor, and the terms were self-directed by Kraken, according to reports.
Some of the investors included Tribe Capital, led by co-CEO Arjun Sethi, despite Sethi also being co-CEO with Kraken.
This development follows Kraken’s acquisition of NinjaTrader earlier this year, as the purchase was valued at $1.5 billion, while the acquisition added two million new users to Kraken’s platform.
This funding is seen as a major advancement as Kraken works towards its initial public offering (IPO) in 2026.
Kraken’s Strategic Growth: Acquisitions and Product Expansion
Instead of moving fast to go public on the public markets, Kraken is focused on strategic growth opportunities through acquiring and innovating in products & services.
In addition to the NinjaTrader acquisition, the firm acquired Breakout, thereby further increasing its footprint in professional and institutional trading.Â
Kraken is further establishing itself as a profitable business, announcing repeatable revenue of $412 million and ~$80 million in EBITDA in Q2 2025.
As part of that strategy, Kraken also recently launched xStocks, which gives its customers the capability to trade tokenized versions of popular stocks in the highest market capitalization companies, such as Apple and Tesla, on the blockchain, according to UnoCrypto.
This expansion exemplifies Kraken’s clear effort to bridge the traditional finance (TradFi) world and crypto, as often emphasized by co-CEO Arjun Sethi.
Also Read: Kraken Announces Integration of INK Token and Layer 2 Tech, $INK Token Gains 10%
Arjun Sethi’s Role and Kraken’s Leadership Dynamics
Arjun Sethi has taken the lead in Kraken’s ongoing transformation.
From the ambience of his unorthodox home office in Menlo Park, California, Sethi has implemented Kraken’s long-term growth ambition, all the while designated as co-CEO with Dave Ripley.
According to industry insiders, Sethi effectively executes nearly all executive decisions at Kraken, informally making the decision-making for the company, using his background as a venture capital partner at Tribe Capital, to persist in a data-focused and product-led way.
His leadership has evoked polarizing reactions. Owing to his disruptive management style, many see him as a necessary piece.
Gearing up for Kraken’s IPO bid, while others have pointed out his continued affiliation with his Tribe Capital venture, and consider it a conflict of interest.
Also Read: Crypto Exchange Kraken Sees 18% Revenue Growth In Q2 With The Numbers Reaching $412M
IPO Plans and Market Risks
Despite its $15 billion valuation, Kraken faces uncertainty regarding maintaining momentum until its IPO in 2026.
The cryptocurrency industry saw renewed IPO activity this year with companies like Circle, Bullish, and Gemini entering the public market amid substantial investor demand.
Nevertheless, the market consists of considerable risks stemming from declining interest rates, the potential overvaluation of cryptocurrencies, and the cyclical nature of the crypto market.
Unlike many competitors, Kraken’s multiple revenue sources, strong presence in Europe, and focus on professional traders may allow it to weather any downturn, but timing its public market debut will play a significant role in its valuation and liquidity.
Also Read: Kraken Acquires Breakout To Launch Global Prop Trading Program
Broader IPO Landscape: Circle, Bullish, and Gemini
Kraken’s funding round and plans for an IPO arrive within the framework of a rapidly expanding market for various types of crypto-related public listings.
In June, Circle (NYSE: CRCL) surprised Wall Street with its opening IPO pricing of $69 per share, 122% above its pricing of $31 ircle’s stock is priced at $124.66 with a market cap of 31.292 billion, according to UnoCrypto. At press time, Circle’s stock is priced at $124.66 with a market cap of 31.292 billion.
Also, in August, we reported that crypto exchange Bullish went public at $37 per share with a valuation of $5.4 billion. Bullish’s initial public offering was oversubscribed 20 times.
In September, Gemini announced it would price its IPO at $28 a share, raising $425 million through a Nasdaq listing, UnoCrypto reported.
These activities illustrate the appetite and risk that numerous crypto-associated firms have shown for going public, as well as a glimpse of the competitive environment Kraken will face when it eventually executes its IPO plans.
Also Read: Kraken Acquires Israel’s Capitalise.ai To Bring No-Code, Natural-Language Trading To Kraken Pro