Kraken Targets $200-300 Million Funding Round at Staggering $20 Billion Valuation
Kraken makes power play for crypto dominance with massive capital injection.
Funding Frenzy
The exchange seeks between $200 million and $300 million fresh capital—fueling expansion plans while traditional finance scrambles to keep pace. This isn't just another funding round; it's a statement about crypto's staying power.
Valuation Reality Check
That proposed $20 billion valuation puts Kraken in rarified air, challenging legacy financial institutions that still treat digital assets like temporary guests at the money party. The numbers speak volumes about investor confidence despite regulatory headwinds.
Market Positioning
Kraken's move signals aggressive growth intentions while Wall Street analysts—busy calculating their own bonuses—question whether any crypto company deserves such premium multiples. The funding would turbocharge global expansion and product development while traditional exchanges play catch-up.
Industry Implications
This capital raise demonstrates crypto's maturation from niche experiment to mainstream financial force. Banks might dismiss the valuation as speculative until they realize Kraken's growing faster than their entire wealth management divisions combined.
Other big crypto companies are also trying to raise huge amounts
Tether Holdings SA, the company behind the world’s biggest stablecoin, is looking to raise between $15 billion and $20 billion from investors in what could become one of the largest private funding deals ever.
The El Salvador-based firm wants to sell roughly 3% of its shares through a private placement, according to people familiar with the discussions. However, one source warned that these figures represent best-case scenarios and the final amounts might be much smaller.
The talks are still in early phases, and terms could shift as negotiations continue. Those involved were not permitted to discuss the matter publicly.
If successful at the higher end, the deal would put Tether’s worth at around $500 billion. That would place it alongside tech giants like OpenAI and Elon Musk’s SpaceX among the world’s most valuable private companies.
The achievement would be remarkable for a crypto business that operates with limited oversight, especially as competition grows and declining US interest rates could hurt its profits. Circle Internet Group Inc., Tether’s main competitor in stablecoins, was valued at about $30 billion as of Tuesday.
The funding would come from issuing new shares rather than current owners selling their holdings. Cantor Fitzgerald is serving as the main advisor for the deal.
Tether CEO Paolo Ardoino confirmed on Wednesday on X that the company is considering raising money from major investors to expand operations across stablecoins, artificial intelligence, commodity trading, energy, communications, and media.
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