Kraken Raises $800M at $20B Valuation, Eyes IPO

The $800 million funding round represents a dramatic scaling up for Kraken, which had previously raised just $27 million in primary capital throughout its history. The primary investment was led by major institutional players including Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital, with additional backing from Kraken Co-CEO Arjun Sethi’s family office. The separate $200 million strategic investment from Ken Griffin’s Citadel Securities was agreed upon at the $20 billion valuation, marking a significant endorsement from one of traditional finance’s most prominent firms.

This substantial funding round exceeded earlier expectations, as The Information had reported in July about a planned $500 million fundraise at a $15 billion valuation. The final tally of $800 million at a $20 billion valuation demonstrates stronger-than-anticipated investor appetite for established crypto infrastructure players. Arjun Sethi emphasized that “this investment represents long-term conviction in Kraken’s mission to build trusted, regulated infrastructure for the open financial system,” highlighting the strategic alignment between the exchange and its new institutional backers.

Kraken’s impressive $20 billion valuation is supported by robust financial performance, with the exchange generating $1.5 billion in revenue in 2024. More significantly, the company revealed that it exceeded that entire year’s revenue in just the first three quarters of 2025, indicating accelerating growth momentum as it approaches its potential public market debut. This financial trajectory provides strong justification for the substantial valuation increase from the previously reported $15 billion to the current $20 billion mark.

The exchange’s consistent revenue growth and expanding market position have positioned it as one of the most established players in the cryptocurrency exchange landscape. Kraken’s ability to attract such substantial funding from traditional finance heavyweights like Citadel Securities and Jane Street reflects both the company’s operational success and the broader maturation of the cryptocurrency industry as institutional investors increasingly seek exposure to digital asset infrastructure.

Kraken has outlined ambitious plans for deploying the new capital, with global expansion into Latin America, Asia Pacific, and EMEA regions representing a key strategic priority. The funding will also support broadening Kraken’s product offerings beyond cryptocurrency to include additional asset classes, advanced trading tools, expanded payment services, and enhanced institutional capabilities. This diversification strategy aligns with Sethi’s statement that the company’s focus is “to create a platform where anyone can trade any asset, anytime, anywhere.”

The substantial funding round comes amid ongoing speculation about Kraken’s public market ambitions, with Bloomberg reporting in March that the company was eyeing an early 2026 move to go public. While Kraken has yet to officially announce IPO plans, the timing of this massive funding round suggests the company is positioning itself for a potential public offering that would represent one of the most significant crypto exchange listings to date. The involvement of established traditional finance players like Citadel Securities and the other institutional investors provides additional credibility as Kraken prepares for this potential transition to public markets.