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- Crypto exchange Kraken reported $411 million in Q2 revenue and continues expanding through acquisitions like NinjaTrader.
- Analysts say Kraken’s diversified revenue and strong reputation position it to withstand market volatility, though delaying its IPO until 2026.
Cryptocurrency exchange Kraken has recently received fresh funding of a massive $500 million, at the company’s valuation of $15 billion, as it prepares for an initial public offering (IPO) next year in 2026. According to a Fortune report on September 25, Kraken’s latest funding round closed this month without a lead investor, with the exchange itself setting the terms.
Participants included investment managers, venture capital firms, and CEO Arjun Sethi’s Tribe Capital, along with Sethi personally. Founded in 2011, Kraken has now raised more than $527 million in total funding, building on its initial $27 million investment.
Crypto Exchange Kraken Prepares for an IPO
Kraken is gearing up for a public listing, now anticipated in 2026, following a funding round that attracted investors drawn to the exchange’s consistent profitability. In Q2, Kraken reported $411 million in revenue and nearly $80 million in post-EBITDA earnings. Furthermore, with the US DoJ dropping the case against Kraken founder Jesse Powell, it has further increased the chances, as reported by CNF.
The exchange’s valuation ranks it among the most valuable private crypto platforms, second only to Coinbase. Kraken has expanded through acquisitions, including its $1.5 billion purchase of NinjaTrader earlier this year, adding two million customers. The firm has also launched new offerings, such as tokenized stocks, or “xStocks,” designed to connect crypto with traditional financial markets.
Since co-founder Jesse Powell stepped down as CEO in 2022, Arjun Sethi has taken a leading role, emphasizing Kraken’s focus on tokenized assets and institutional trading. Under his leadership, the company has broadened its retail and institutional offerings, including advanced APIs and derivatives. However, this expansion comes with executive turnover and internal restructuring, raising concerns about management and employee morale.
Sethi said the company is leveraging the modular services of decentralized finance (DeFi). This will give consumers greater control over their assets and new opportunities to lend or securitize them. Sethi said:
“My hope with crypto is to distribute those benefits more evenly. We’re not all the way there, but the first steps are happening—stablecoins, then tokenized assets, and now tokenized equities.”
Riding the Crypto IPO Wave
Kraken’s latest funding comes amid a wave of cryptocurrency IPOs, with Circle, Gemini, and Bullish already going public this year. Unlike its peers, Kraken has chosen to delay its listing until 2026, a move that raises questions as a potential market cycle shift could dampen investor appetite for crypto-related stocks.
Analysts argue that Kraken’s established reputation and diversified revenue streams give it an advantage over competitors in navigating market volatility. The company’s $500 million funding round underscores investor confidence as it positions itself for its next stage of growth