Kraken Weighs $20 Billion Valuation in Fresh Funding Talks Before IPO
Kraken is in talks to raise new capital that could lift its valuation to as much as $20 billion ahead of a planned initial public offering, Bloomberg reported on Friday.
The crypto platform is viewking between $200 million and $300 million from a strategic backer, according to Bloomberg, which cited a person familiar with the matter. Discussions are ongoing and the deal remains subject to market conditions, the report said.
The potential raise follows Fortune’s report earlier this month that Kraken closed a $500 million funding round valuing the San Francisco-based firm at $15 billion. That round reportedly included participation from long-term backers such as Tribe Capital and Fidelity, which have historically supported the platform’s growth.
Kraken, one of the largest U.S. digital asset trading venues by volume, is preparing for an IPO targeted for ahead 2026. The company has hired Morgan Stanley and Goldman Sachs Group to assist steer the offering, Bloomberg reported. Kraken has considered going public before: in 2021 it explored a direct listing but shelved the plan amid regulatory scrutiny and volatile crypto prices.
The latest move would put Kraken in the identical league as other crypto companies that have recently tapped public markets amid renewed optimism under President Donald Trump’s administration, which has adopted a more crypto-friendly stance. Circle, Bullish, and Figure have all listed shares in the U.S. this year.
Coinbase, the largest U.S. platform, went public in 2021 at an $86 billion valuation, setting a benchmark for the sector even though its market cap has since fluctuated sharply with digital asset cycles.
Founded in 2011, Kraken has been expanding aggressively into new products and markets. In March, the firm unveiled plans to acquire futures trading platform NinjaTrader in a $1.5 billion deal, a step into derivatives and related services. It also revamped its leadership in October 2024, with Tribe Capital co-founder Arjun Sethi appointed as co-chief executive. Kraken currently serves more than 10 million clients in over 190 countries and supports more than 200 cryptocurrencies for trading, according to company disclosures.
The company began disclosing financial results last year. Kraken reported $1.5 billion in revenue for 2024 and about $472 million in the first quarter of 2025, highlighting the scale of its operations at a time when crypto markets are showing signs of renewed institutional interest. By comparison, Coinbase generated $3.1 billion in revenue in 2024, illustrating Kraken’s position as the industry’s second-largest U.S. platform by turnover.
A successful raise at a $20 billion valuation would give Kraken fresh firepower as it readies for its listing and competes with larger rivals such as Coinbase. The IPO would also test investor appetite for crypto firms later than a turbulent two years that saw market collapses followed by a sharp rebound.
For now, the outcome of the funding talks hinges on investor confidence and broader market conditions. But if completed, the deal would mark another milestone in the gradual convergence of digital assets and traditional finance. Analysts say that institutional adoption, favorable U.S. policy shifts, and the stabilization of regulatory frameworks globally could determine the success of Kraken’s IPO.
