In a remarkable development, cryptocurrency exchange Kraken has concluded a substantial funding round of $500 million, elevating its valuation to an impressive $15 billion, as reported by Fortune. This achievement sets the stage for the company’s eagerly awaited initial public offering (IPO), anticipated for the upcoming year.

Kraken’s Valuation Surges to $15 Billion

Back in July, The Information reported on Kraken’s objective of amassing this noteworthy funding. Recent confirmations indicate that the funding round was completed this month, even without a singular lead investor.

Interestingly, Kraken dictated the terms of this arrangement, including its high valuation. Participants in this funding round featured an array of seasoned investment managers and venture capitalists, prominently including the company’s co-CEO Arjun Sethi’s Tribe Capital, as well as Sethi himself making a personal investment.

This latest valuation is a significant leap from the $11 billion it achieved in 2022 when it secured funding, the details of which were not disclosed. Kraken has shown remarkable financial resilience, reporting revenues of $1.5 billion in 2024, with additional income of $472 million in the first quarter of 2025.

Presently, Kraken boasts an impressive daily trading volume of $1.37 billion, securing its position as the second-largest exchange in the United States, following Coinbase (COIN), which successfully went public in April 2021.

IPO Activity on the Rise in Crypto

The cryptocurrency environment has seen significant transitions this year, moving from a peak of enthusiasm in 2021 to a more tempered and cautious investment landscape.

Nonetheless, the demand for public offerings among crypto entities has returned, fueled by supportive regulatory developments. This resurgence has led to a wave of IPO endeavors in the crypto space, with firms like Circle (CRLC) and Bullish (BLSH) seizing the renewed interest in crypto equities.

In conjunction with its successful funding, Kraken is making strides to broaden its offerings beyond just standard cryptocurrencies. The company has ventured into the realm of tokenized securities, placing itself at the forefront of this burgeoning sector.

Moreover, Kraken has recently acquired NinjaTrader, a retail futures trading platform regulated in the US, for $1.5 billion, aiming to extend its footprint into markets in the UK, Europe, and Australia.

Earlier this year, the company also acquired a Cyprus-based business to obtain a Markets in Financial Instruments Directive (MiFID) license, facilitating the provision of derivatives throughout the European Economic Area (EEA).

In terms of political engagement, Kraken has pledged $2 million to two pro-crypto political action committees (PACs), emphasizing its commitment to championing privacy and innovation in the United States. Co-CEO Arjun Sethi highlighted the ongoing struggle for cryptocurrency’s future in the US, noting a notable transformation in political attitudes from “fear to understanding” observed in 2025.

Featured image from Bloomberg, chart from TradingView.com