Kraken Eyes $20B Valuation After $500M Raise

Cryptocurrency exchange Kraken is in advanced talks to raise fresh capital at a $20 billion valuation, just one week after completing a $500 million round at a $15 billion valuation, according to Bloomberg.

The upcoming round may include a commitment of $200–300 million from a strategic investor, though Kraken declined to comment on the report. If successful, the deal would mark a 33% valuation increase in just a week, reflecting surging investor appetite for crypto infrastructure firms amid clearer regulations and accelerating institutional adoption.

According to Fortune, Kraken’s recent $500M raise included participation from investment managers, venture capital firms, and co-CEO Arjun Sethi through his firm Tribe Capital. This marked a dramatic shift for a company that had raised just $27 million before 2025.

The funding momentum positions Kraken for a potential IPO now planned for 2026, following leadership restructuring and aggressive expansion. Since becoming co-CEO in October 2024, Sethi has overseen major management changes, including the departures of the CTO, COO, sales leads, and general counsel. While Kraken described these changes as streamlining, insiders noted they impacted morale and consolidated Sethi’s control, even as co-CEO Dave Ripley retained his title.

Kraken has also pursued significant acquisitions, most notably the $1.5 billion takeover of NinjaTrader announced in March, which Sethi called “the largest-ever deal combining traditional finance and crypto.” The exchange also launched xStocks, a tokenized stock trading product offering shares of companies such as Apple and Tesla, which gained early traction in markets like South Africa.

Recent financials revealed $411 million in Q2 revenue and nearly $80 million in post-EBITDA earnings, showcasing Kraken’s profitability as it readies for public markets. Founded in 2011, Kraken is now a major global crypto exchange, providing spot, margin, and derivatives trading across 200+ assets and eight fiat currencies, serving over nine million traders and institutions worldwide.

Still, some investors worry that delaying the IPO until 2026 could expose Kraken to market timing risks if crypto sentiment weakens. However, Sethi has insisted that Kraken will only pursue a listing under conditions favorable to both users and shareholders.

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