Kraken Targets $20B Valuation in $300M Pre-IPO Funding Round

Kraken charges toward public markets with war chest expansion

The exchange just secured major backing at a staggering valuation—proving crypto's institutional appeal remains bulletproof despite traditional finance skepticism.

Funding firepower

That $300 million infusion positions Kraken as one of the best-capitalized exchanges globally. The raise demonstrates investor confidence in crypto infrastructure plays over volatile retail trading narratives.

Market positioning

Hitting a $20 billion valuation would place Kraken squarely among fintech's elite—a remarkable feat for a company that traditional VCs dismissed as niche just years ago. The timing suggests exchanges are racing to go public before the next regulatory clampdown.

Wall Street's watching while Main Street's trading—typical finance priorities.

TLDR

• Kraken is in advanced talks to raise between $200 million and $300 million from strategic investors.
• The funding round could push Kraken’s valuation to $20 billion as it prepares for a potential IPO.
• Kraken recently completed a $500 million funding round at a $15 billion valuation.
• The exchange is working with Morgan Stanley and Goldman Sachs to lead its public offering.
• Kraken announced plans to acquire NinjaTrader, a derivatives platform, in a $1.5 billion deal.

Kraken, the San Francisco-based crypto exchange, is reportedly in advanced talks to raise between $200 million and $300 million. This funding could value Kraken at $20 billion as it prepares for a potential public listing, according to a Bloomberg report. Kraken, one of the largest crypto exchanges in the U.S., is pushing to go public as early as 2026.

Kraken Partners with Morgan Stanley for IPO

The new capital raise is part of Kraken’s strategy to bolster its position in the crypto market. Kraken recently completed a $500 million round at a $15 billion valuation, as reported by Fortune. The latest funding round signals Kraken’s effort to increase its market presence as it prepares for a future IPO.

The company aims to attract strategic investors, a MOVE that could solidify its standing ahead of the listing. Kraken has tapped Morgan Stanley and Goldman Sachs to help lead the offering, sources say. The exchange’s growth and financial position make it an appealing candidate for an IPO in the coming years.

Kraken’s growth strategy includes expanding its services and scaling operations to maintain its position in the competitive crypto space. As part of its expansion, Kraken announced plans to acquire NinjaTrader, a derivatives platform, for $1.5 billion. The acquisition aligns with Kraken’s broader vision to diversify and strengthen its product offerings.

Political Involvement and Industry Influence

Kraken is also making significant political moves, aiming to shape the regulatory landscape for digital assets. The exchange recently pledged $2 million to pro-Trump crypto political action committees in 2025. Arjun Sethi, Kraken’s Co-CEO, said the move aligns with Kraken’s strategy to support candidates who promote industry growth.

The donations include $1 million to the Digital Freedom Fund and another $1 million to Andreessen Horowitz’s America First Digital initiative. Kraken’s political contributions indicate its growing influence and involvement in shaping the future of cryptocurrency regulations in the U.S. The firm sees these actions as crucial in fostering a regulatory environment conducive to innovation in the digital asset space.

Kraken’s political engagement follows earlier donations, including a $750,000 contribution to the Fairshake PAC in January 2024. These donations highlight Kraken’s commitment to playing an active role in the political process. Kraken is positioning itself not only as a leading crypto exchange but also as a key player in shaping the future of the industry.

Kraken’s efforts come amid growing momentum for cryptocurrency companies to go public. Several crypto-related firms, including BitGo and Circle, have pursued or completed IPOs recently. Kraken’s IPO, which could occur as early as 2026, reflects this increasing trend of crypto firms seeking public listings.