Kraken announced it has achieved a valuation of $20 billion following an $800 million funding round. The company stated this capital infusion will fuel its global expansion efforts.
The US-based crypto exchange disclosed on Tuesday that the funding was raised across two tranches. The second tranche featured a $200 million strategic investment from the prominent US market-making firm Citadel Securities, contributing to the $20 billion valuation.
This strategic partnership with Citadel also includes the firm offering Kraken expertise in areas such as differentiated liquidity provision, risk management, and market structure insights. Citadel Securities was also a participant in Ripple's recent $500 million raise.
The primary tranche of Kraken's funding round saw participation from Jane Street, DRW Venture Capital, HSG, and Tribe Capital. Additionally, the family office of Kraken Co-CEO Arjun Sethi made a significant commitment.
"With this additional capital, we will continue scaling our global operations, deepening our regulated footprint and expanding our product suite — both organically and through targeted acquisitions," Kraken stated.
Kraken currently operates in numerous countries. The company intends to enhance its existing services and offerings while pursuing expansion into new markets across Latin America, Asia Pacific, Europe, the Middle East, and Africa.
Kraken's Public Listing Plans
Kraken has previously hinted at or been rumored to be pursuing a public listing on multiple occasions. As far back as early 2021, co-founder and former CEO Jesse Powell indicated that the firm had plans to go public at the beginning of 2022.
Despite competing exchanges like Coinbase having gone public over four years ago, Kraken has not yet made a definitive move toward a public offering.
Kraken co-CEO Arjun Sethi informed Yahoo Finance on Friday that the firm is not rushing its US IPO, even as the regulatory landscape in the US becomes more favorable.
Sethi emphasized that Kraken is "financially sound" and well-capitalized through private funding. The latest capital injection is expected to further reinforce this financial stability.