The crypto exchange has until this year raised only about US$27 million in primary capital
[PORTLAND] Kraken is in advanced talks to raise new funding that could value the crypto exchange at about US$20 billion, as the company steps up capital-raising efforts ahead of a potential public listing.
The funding, which is not yet finalised and remains subject to market conditions, would consist of a US$200 million to US$300 million commitment from a strategic investor, according to a source familiar with the discussions who declined to be named, citing confidentiality.
It would follow Kraken’s recent US$500 million raise at a US$15 billion valuation, the source said, and mark a significant step-up in how private markets are pricing crypto’s larger incumbents. A spokesperson for Cheyenne, Wyoming-based Kraken declined to comment.
Founded in 2011 and known officially as Payward, Kraken has until this year raised only about US$27 million in primary capital. The new funding would expand its war chest as it competes with publicly listed Coinbase Global and other global exchanges. Kraken recently began offering tokenised equity trading, including stocks and exchange-traded funds, and has widened its product suite in advance of a planned initial public offering.
It comes as crypto’s largest players accelerate fundraising efforts amid a thaw in US regulatory sentiment and growing mainstream adoption. A rising number of digital asset firms are tapping private and public markets to expand product lines, acquire licenses, and position for potential listings.
The crypto exchange has also picked bankers, Morgan Stanley and Goldman Sachs, for its upcoming initial public offering, expected to take place next year, sources familiar with the matter said. Representatives for Morgan Stanley and Goldman declined to comment.
In March, Bloomberg News reported that Kraken is seeking to go public as soon as the first quarter of next year, citing sources with knowledge of the matter.
The world’s biggest stablecoin issuer, Tether Holdings, is in talks with investors, including ARK Investment Management, to raise between US$15 billion and US$20 billion at US$500 billion valuation. Circle Internet Group, Gemini Space Station and Bullish have gone public this year. BLOOMBERG
