Kraken Secures $500M Funding at $15B Valuation Ahead of 2026 IPO

Kraken, a major cryptocurrency exchange, has successfully raised $500 million in a funding round that values the company at $15 billion, positioning it for a targeted initial public offering (IPO) in 2026. The funding round was structured without a lead investor and included participation from various firms, funds, and Kraken's co-CEO Arjun Sethi, who has been instrumental in steering the company toward expanding institutional offerings and tokenized assets. Kraken's revenue and profitability have attracted investors, with recent Q2 figures showing $411 million in revenue and nearly $80 million in post-EBITDA earnings, bolstered by acquisitions such as the $1.5 billion purchase of NinjaTrader. The capital raised is expected to fuel growth through market expansion, product innovation, and talent acquisition. While Kraken has been less publicly visible compared to competitors like Coinbase, it aims to enhance its market presence and meet the valuation expectations ahead of the IPO. The company's leadership under Sethi, who blends venture capital experience with operational oversight, emphasizes a strategic shift toward bridging crypto with traditional markets and institutional trading.