Kraken has reportedly raised $500 million at a $15 billion valuation, strengthening its financial position amid growing speculation that the cryptocurrency exchange is preparing for an initial public offering (IPO).
The funding was first reported by Fortune, which cited a source close to the negotiations in a profile on co-CEO Arjun Sethi. The source claimed that Kraken closed the round earlier this month.
When contacted by Cointelegraph for confirmation, a Kraken representative declined to comment.
The raise and valuation are broadly in line with Cointelegraph’s reporting in July, which revealed that Kraken was seeking $500 million at a $15 billion valuation — a move widely interpreted as a step toward IPO readiness.
While Kraken has not filed any regulatory paperwork for a public listing, several of its actions appear consistent with IPO preparation, including enhancing financial disclosures. However, the company has yet to submit an S-1 registration statement to the US Securities and Exchange Commission (SEC), a necessary step for any US public offering.
Founded in 2011 and launched in 2013, Kraken is one of the industry’s oldest operating exchanges. It processed roughly $1.9 billion in trading volume over the past 24 hours, ranking among the top 15 global crypto exchanges, according to CoinMarketCap.
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Crypto IPO mania grows
Kraken’s reported interest in a public offering comes amid a wave of crypto firms heading to public markets with remarkable success.
Gemini, the exchange founded by Cameron and Tyler Winklevoss, was over 20 times oversubscribed in its Nasdaq debut, raising $425 million. Since going public earlier this month, its market capitalization has swelled to over $2.8 billion.
Circle, the issuer of USDC (USDC), completed a billion-dollar IPO in June, with shares surging 167% on opening day. The company now commands a valuation of roughly $31.4 billion.
Figure Technology Solutions, a blockchain-based lender, also staged a blockbuster debut. Its shares jumped over 20% when trading began in September, lifting its market cap above $8.4 billion.
Meanwhile, BitGo, a leading crypto custodian with over $90 billion in assets, has filed S-1 registration documents with the SEC as it seeks to list its Class A common stock on the New York Stock Exchange.
The IPO rush comes amid a backdrop of favorable regulatory developments in the United States, including the passage of the GENIUS stablecoin bill and progress on market structure and anti-CBDC legislation, which together have provided greater clarity for the digital asset industry.
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