Crypto exchange Kraken announced that it has raised $800 million in fresh capital across two funding tranches, catapulting its valuation to $20 billion. This comes just ahead of the company’s planned initial public offering (IPO) targeted for early 2026.
The news has generated significant buzz in both crypto and traditional finance circles, signaling strong institutional confidence in Kraken’s growth trajectory amid a maturing regulatory landscape.
The funding was split into two rounds. The first tranche of $600 million came in at a $15 billion valuation from investors including Jane Street, DRW Venture Capital, HSG (Herald Investment), Oppenheimer Alternative Investment Management, and Tribe Capital. The second tranche added $200 million from Citadel Securities at the elevated $20 billion valuation.
Beyond the cash, Citadel is providing expertise in liquidity provision, risk management, and market structure. This marks a notable shift for the firm, which had historically shied away from direct crypto investments due to regulatory hurdles.
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Kraken had only raised about $27 million in venture capital historically. This latest infusion builds on a July 2025 effort to secure $500 million and follows September talks for $200–300 million from a single strategic investor.
The capital is earmarked for aggressive expansion argeting new markets in Latin America, Asia-Pacific, Europe, the Middle East, and Africa, with a focus on regulatory-compliant operations. Enhancing asset offerings, payments solutions, and bringing traditional finance (TradFi) products on-chain.
Recent acquisitions include NinjaTrader for $1.5 billion and Small Exchange for $100 million to bolster U.S. derivatives. Bloomberg reports Kraken is working with Morgan Stanley and Goldman Sachs for the listing, potentially in Q1 2026. This positions it ahead of peers like Bullish and Gemini, which have faced post-IPO challenges.
Kraken’s co-CEO Arjun Sethi emphasized the vision: “Our focus has always been straightforward: to create a platform where anyone can trade any asset, anytime, anywhere.” The exchange reported $472 million in Q1 2025 revenue up 19% YoY and $40.5 billion in October trading volume, underscoring its operational strength.
Citadel’s involvement highlights TradFi’s increasing integration with crypto, especially post-FTX recovery and under a more crypto-friendly U.S. administration. While spot ETF flows were negative on November 18 ~$373M outflow for BTC, $74M for ETH, Kraken’s raise reflects optimism for regulated infrastructure over speculative on-chain activity.
Onchain mectrics noted the contrast with slower growth in daily active users on chains like Solana 2.4M, declining and Ethereum 500K, flat. At $20B, Kraken surpasses many rivals and eyes a “one-stop shop” for crypto and beyond, potentially rivaling Coinbase’s 100M users.
Coinbase Global, Inc. (NASDAQ: COIN) went public via direct listing on April 14, 2021, with shares opening at $381 up 52% from the $250 reference price and closing at $328.28, implying an $85.8 billion valuation at the time.
This debut marked a historic milestone for the crypto industry, showcasing explosive growth amid Bitcoin’s bull run. However, the stock’s journey since has mirrored the sector’s volatility: soaring peaks, gut-wrenching lows, and a 2025 rebound that’s been modest at best.
COIN trades at $261.79, down about 31% from its IPO close but up roughly 2% year-to-date. Coinbase reported Q1 revenue of $1.8B and net profit of $730-800M, underscoring its dominance with 56M users. The stock ended 2021 up ~10% from IPO, but volatility was rampant as it tracked crypto prices.
The “crypto winter” post-FTX implosion crushed COIN, dropping to $31.83 by Dec 2022—a 90%+ wipeout from IPO highs. Trading volumes plummeted, revenue fell 60% YoY, and regulatory scrutiny added pressure. By mid-2023, it traded at ~$62, down 84% from debut.
2024 Recovery: A Bitcoin halving and ETF approvals sparked a rebound. Shares climbed ~150% for the year, hitting $343 by Dec 2024 52-week high then. Q4 revenue jumped on institutional inflows, but lingering SEC battles capped gains.
Q1-Q2 2025: Surge hits $147 low in April amid economic uncertainty and BTC dips, then rallied 196% to $436 in July. May 13 announcement of S&P 500 inclusion, sparking a 22.9% single-day jump to ~$256. June saw 52% monthly gains best since Nov 2024, tied to Circle’s IPO rally and stablecoin buzz—Coinbase benefits as a custodian and revenue sharer.
July ATH reflected crypto recovery, but October-November saw a 24% drop to $262, possibly from broader market corrections, regulatory noise and Bitcoin’s YTD decline. Recent X chatter highlights earnings beats on trading volumes and stablecoins, but stock lags peers like leveraged ETFs.
2025 revenue hit $472M in Q1 up 19% YoY, with $40B+ monthly volumes. Analysts at Bernstein, Oppenheimer raised targets post-Q2, eyeing $300+ by year-end if BTC stabilizes. However, COIN’s fate remains ~80% correlated to crypto prices—risky for non-HODLers.
Forbes projects potential $400+ in 3 years if crypto booms, but recession risks could drag it to $150. With 100M+ users, Coinbase eyes TradFi crossovers, but it’s no “set-it-and-forget-it” stock. Coinbase’s post-IPO saga is a microcosm of crypto: high-reward, high-risk.
From $86B debut hype to today’s steadier but subdued footing, it’s resilient but tethered to BTC’s whims. This latest $800M funding round cements Kraken’s status as a frontrunner in the next wave of crypto IPOs.