According to a recent report by Fortune, cryptocurrency exchange Kraken has closed a massive $500 million funding round at a staggering $15 billion valuation.
To put this massive raise into perspective, it is worth noting that the exchange raised only $27 million in venture capital funding during its first decade.
IPO plans
Kraken has been considering going public for roughly five years. Then-CEO Jesse Powell first divulged the company's IPO plans in 2021 during a major bull run.
However, Kraken's plans to go public were likely postponed due to the cryptocurrency winter that came in 2022.
In March, Bloomberg reported that Kraken was planning to go public in 2026. This was followed by the company's acquisition of futures trading platform NinjaTrader.
As reported by U.Today, the cryptocurrency industry is currently experiencing an IPO boom, with such major names as Circle and Gemini all going public.
Kraken is facing increasing pressure to go public in the near future since its valuation risks taking a significant hit if its cryptocurrency prices tank in 2026. However, it is worth noting that the company still has rather strong fundamentals.
Unconventional CEO
Co-CEO Arjun Sethi is currently spearheading the exchange in a rather unorthodox way.
Sethi operates one of the world's largest exchanges out of his home in Menlo Park, combining business with his personal life.
He is primarily focused on merging crypto with traditional finance, with Kraken's recent tokenization efforts being part of this push.
With xStocks, which are tokenized versions of US equities, Kraken aims to increase its appeal for retail traders.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team