As Kraken prepares to go public, the cryptocurrency exchange has reportedly conducted a discreet $500 million funding round. What do we know?
Kraken’s IPO plans take shape
On Thursday, Fortune Crypto published a lengthy article on Arjun Sethi, Kraken’s co-CEO, revealing that the cryptocurrency exchange is reportedly conducting a $500 million funding round to go public.
The subject of an Initial Public Offering (IPO) for Kraken is not new. In June 2024, Bloomberg reported on plans to raise $100 million in funding for an IPO, while last March it was revealed that this IPO was scheduled for 2026.
Now, Fortune reveals that, according to a person familiar with the matter, Kraken has finally closed a $500 million funding round this month, with a view to an IPO valued at $15 billion. Since its launch in 2011, Kraken had raised only $27 million, and according to the exchange’s terms, no initial investors participated in this new round of fundraising. Arjun Sethi, on the other hand, reportedly participated personally through his investment fund Tribe Capital.
Looking at the Securities and Exchange Commission (SEC), we can see a Form D filing dated Tuesday, which states that Payward, Kraken’s parent company, has completed an equity sale of more than $29.31 million:
For the time being, however, it should be noted that it is not certain whether or not this transaction is related to the IPO project, and that no S-1 form (which would confirm the rumors) has yet been made public.
As the crypto market appears to be entering a phase of uncertainty, concerns may be raised about possible turbulence for the stock once it is listed on the stock exchange. For his part, Arjun Sethi is reassuring, highlighting Kraken’s advantages over its competitors:
Our model is built around professional traders and institutions. Features such as Kraken Pro, our robust API, and our advanced interfaces make us a preferred destination for funds and high-volume clients. They use our exchange platform not for its flashiness, but for its efficiency and high liquidity.
If and when Kraken’s IPO goes ahead, it will be interesting to see how the company fares in the markets compared to its competitors. To date, it should be noted that the shares of Coinbase, Gemini, and Bullish are still trading below their first day of listing prices.
