Kraken’s valuation hits $20 billion following Citadel ‘strategic investment’ as exchange pushes toward IPO

Kraken said Tuesday it raised $800 million across two different tranches over the past two months, giving it a valuation of $20 billion as the U.S. crypto exchange fuels its move toward an initial public offering.

The primary tranche was led by institutional investors, including Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital, along with a significant commitment from Kraken co-CEO Arjun Sethi's family office. An agreement for a subsequent $200 million strategic investment from Citadel Securities.

"We're excited to support Kraken's continued growth as it helps shape the next chapter of digital innovation in markets," Citadel President Jim Esposito said in a press release. "Citadel Securities’ collaboration with Kraken will include differentiated liquidity provision, risk management expertise, and market structure insights."

Kraken was in talks to raise "$200 million to $300 million commitment from a strategic investor," Bloomberg reported in September. Fortune was first to report Tuesday's raise.

Kraken has been scaling its global operations, mostly through acquisitions, ahead of a reported IPO planned for early next year. Most recently, the company bought Small Exchange for $100 million to launch a U.S. derivatives trading platform.

Kraken restructured in October 2024 with Tribe Capital co-founder Arjun Sethi taking the reins as co-CEO alongside David Ripley.

The firm said it earned $472 million in revenue in the first quarter of 2025, up 19% from the prior year. Among cryptocurrency exchanges with USD support, Kraken generated $40.5 billion in trading volume last month.

"This investment represents long-term conviction in Kraken's mission to build trusted, regulated infrastructure for the open financial system," Sethi said Tuesday. "Our focus has always been straightforward: to create a platform where anyone can trade any asset, anytime, anywhere. The caliber of our new investors reflects both the scale of the opportunity ahead and the depth of alignment around how this infrastructure should be built."