Kraken Reports Record Revenue and Prepares for Potential 2026 IPO
Revenue Surges to Record Levels
Kraken reported third-quarter revenue of $648 million, up 114% from a year earlier, marking its best performance since the exchange was founded in 2011. The company stated on Wednesday that adjusted EBITDA rose to $178.6 million, lifting its margin to 27.6% from 18.5% a year ago. Total trading volume climbed 106% year over year to $561.9 billion, while assets held on the platform increased by 89% to $59.3 billion. Funded accounts reached 5.2 million by the end of the quarter, indicating rising retail and institutional activity amidst a broader recovery in digital asset markets. Kraken described the quarter as its "strongest financial performance to date," highlighting growth across both spot and derivatives markets. These results follow a series of acquisitions earlier this year and are part of continued preparations for a potential public listing.
Expansion Ahead of Potential IPO
Founded in San Francisco in 2011, Kraken stands as one of the oldest operating crypto exchanges in the United States. The company has pursued an aggressive expansion strategy throughout 2025, acquiring several firms to enhance its trading and tokenization capabilities. In July, Kraken launched a U.S. derivatives division, offering access to CME-listed crypto futures and entering a market historically dominated by institutional players. In September, the exchange acquired Breakout, a proprietary trading firm, and announced plans for a tokenized securities platform that will enable European investors to trade blockchain-based representations of U.S. stocks. Kraken aims to bridge traditional finance with digital assets, stating, "We are building what legacy financial systems were not designed to achieve."
Valuation and IPO Speculation
On September 26, Fortune reported that Kraken secured $500 million in funding at a valuation of approximately $15 billion. This capital infusion has fueled expectations that the exchange is preparing for an initial public offering in 2026, which would follow other major crypto firms like Bullish, Circle, and Gemini in going public. While executives have not confirmed specific timing, individuals familiar with the matter indicate that discussions with advisers are currently underway. A public listing would serve as a test of investor appetite for digital asset platforms, particularly in the wake of this year's recovery in trading volumes and a more favorable U.S. regulatory environment.
Broader Market Context
Kraken's recent performance mirrors a wider rebound across the cryptocurrency sector in 2025. Trading volumes for Bitcoin and Ethereum have surged, driven by renewed institutional demand, and several exchanges, including Bullish and Gemini, have reported double-digit growth. Enhanced regulatory clarity in the U.S. has also alleviated pressure on compliance-focused operators like Kraken, allowing them to expand product lines that were previously restricted. Consequently, these results underscore the maturation of the market, where regulated exchanges are consolidating gains as retail speculation gradually subsides. Kraken's integrated offerings in trading, custody, and tokenization could provide a competitive advantage if digital assets regain favor among U.S. investors leading up to 2026.