Kraken has reportedly secured $500 million at a valuation of $15 billion, bolstering its financial status amid increasing speculation that the cryptocurrency exchange is gearing up for an initial public offering (IPO).
The funding was first reported by Fortune, which cited a source familiar with the negotiations in a profile on co-CEO Arjun Sethi. The source indicated that Kraken finalized the funding round earlier this month.
When contacted by Cointelegraph for confirmation, a Kraken representative refrained from commenting.
The funding and valuation align with Cointelegraph’s reporting from July, which indicated that Kraken was seeking $500 million at a $15 billion valuation — a step widely viewed as preparing for an IPO.
Although Kraken has not submitted any regulatory documentation for a public listing, numerous actions suggest IPO preparation, including enhanced financial disclosures. Nonetheless, the company has yet to file an S-1 registration statement with the US Securities and Exchange Commission (SEC), which is essential for any public offering in the US.
Founded in 2011 and launched in 2013, Kraken is among the oldest exchanges in the industry. It processed roughly $1.9 billion in trading volume over the past 24 hours, ranking within the top 15 global crypto exchanges, according to CoinMarketCap.
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Crypto IPO mania grows
Kraken’s reported interest in going public arrives as a wave of crypto firms successfully enter public markets.
Gemini, the exchange established by Cameron and Tyler Winklevoss, was over 20 times oversubscribed in its Nasdaq debut, securing $425 million. Since going public earlier this month, its market capitalization has increased to over $2.8 billion.
Circle, the issuer of USDC (USDC), completed a billion-dollar IPO in June, with shares soaring 167% on the first day of trading. The company is now valued at approximately $31.4 billion.
Figure Technology Solutions, a blockchain-based lending platform, also made a significant market debut. Its shares rose over 20% upon trading commencement in September, pushing its market cap beyond $8.4 billion.
Meanwhile, BitGo, a prominent crypto custodian managing over $90 billion in assets, has filed S-1 registration documents with the SEC as it aims to list its Class A common stock on the New York Stock Exchange.
The IPO surge comes in the context of favorable regulatory developments in the United States, including the recent passage of the GENIUS stablecoin bill and advancements in market structure and anti-CBDC legislation, providing more clarity for the digital asset sector.
Related: US lawmakers challenge SEC on Tron IPO, press for probe into Justin Sun
