Kraken Submits IPO Filing Following $800M Fundraising at $20B Valuation

US-based cryptocurrency exchange Kraken has confidentially submitted a draft registration statement with the SEC for an initial public offering (IPO). The number of shares and initial pricing remain undetermined. The IPO will proceed following the SEC's review.

Fundraising and Expansion

Kraken completed an $800 million fundraising effort, divided into tranches.
Institutional investors such as Jane Street and DRW Venture Capital participated, alongside significant commitments from Co-CEO Arjun Sethi's family.
A subsequent $200 million investment by Citadel Securities occurred at a $20 billion valuation.
Citadel to provide liquidity, risk management, and market insights.
Funds will scale operations, enhance regulatory compliance, and expand services globally, targeting new markets in Latin America, Asia Pacific, Europe, the Middle East, and Africa.

In its recent quarterly report, Kraken recorded:

$648 million revenue, a 47% increase from $303.5 million in the previous quarter.
124% quarter-over-quarter EBITDA growth, with margins rising by 9 points to 27.6%.
Total platform transaction volume increased by 23% to $561.9 billion.
Assets on the platform grew by 34% to $59.3 billion.