(Bloomberg) — Kraken is in advanced talks to raise new funding that could value the crypto exchange at about $20 billion, as the company steps up capital-raising efforts ahead of a potential public listing.
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The funding, which is not yet finalized and remains subject to market conditions, would consist of a $200 million to $300 million commitment from a strategic investor, according to a person familiar with the discussions who declined to be named citing confidentiality.
It would follow Kraken’s recent $500 million raise at a $15 billion valuation, the person, said, and mark a significant step-up in how private markets are pricing crypto’s larger incumbents. A spokesperson for Cheyenne, Wyoming-based Kraken declined to comment.
Founded in 2011 and known officially as Payward Inc., Kraken has until this year raised only about $27 million in primary capital. The new funding would expand its warchest as it competes with publicly listed Coinbase Global Inc. and other global exchanges. Kraken recently began offering tokenized equity trading — including stocks and exchange-traded funds — and has widened its product suite in advance of a planned initial public offering.
It comes as crypto’s largest players accelerate fundraising efforts amid a thaw in US regulatory sentiment and growing mainstream adoption. A rising number of digital asset firms are tapping private and public markets to expand product lines, acquire licenses, and position for potential listings.
The crypto exchange has also picked bankers — Morgan Stanley and Goldman Sachs Group Inc. — for its upcoming initial public offering, expected to take place next year, people familiar with the matter said. Representatives for Morgan Stanley and Goldman declined to comment.
In March, Bloomberg News reported that Kraken is seeking to go public as soon as the first quarter of next year, citing people with knowledge of the matter.
The world’s biggest stablecoin issuer, Tether Holdings SA, is in talks with investors including ARK Investment Management LLC to raise between $15 billion and $20 billion at $500 billion valuation. Circle Internet Group Inc., Gemini Space Station Inc. and Bullish have gone public this year.
–With assistance from Anthony Hughes.
(Adds in the sixth paragraph that Morgan Stanley declined to comment.)
