Kraken Secures $800 Million at $20 Billion Valuation in Dual-Tranche Funding Round

Cryptocurrency exchange Kraken has raised $800 million in a funding round that values the company at $20 billion, marking a 33% increase from its September valuation. The dual-tranche structure saw participation from institutional heavyweights including Jane Street, HSG, and Citadel Securities, which contributed $200 million as a strategic investor.

Arjun Sethi's Tribe Capital and personal investments exceeded $100 million in the primary tranche, demonstrating strong insider confidence. This follows Sethi's transition from investor to co-CEO, where he now spearheads Kraken's vision for bridging traditional and decentralized finance.

The capital infusion arrives amid growing institutional interest in crypto infrastructure plays, particularly those positioned to benefit from potential regulatory tailwinds. Kraken's valuation leap reflects market Optimism about exchanges with robust compliance frameworks and institutional partnerships.