Kraken is reportedly exploring the possibility of raising up to $1 billion in debt financing ahead of a potential initial public offering.
The company is collaborating with financial giants Goldman Sachs Group Inc. and JPMorgan Chase & Co. to assess this strategic move, according to Bloomberg reporting. The proposed debt raise, which could be as low as $200 million, is intended to fuel Kraken’s growth initiatives rather than cover operational expenses.
In addition to the debt financing, Kraken is contemplating an equity raise, though no final decisions have been made, and the terms may evolve.
Founded in 2011, Kraken has experienced significant growth, reporting a 128% increase in revenue to $1.5 billion in 2024, with adjusted earnings before interest, taxes, depreciation, and amortization of $380 million.
The platform serves over 10 million users across more than 190 countries, processing quarterly trading volumes exceeding $207 billion.
Kraken’s IPO
Kraken’s IPO ambitions have been bolstered by a more favorable regulatory environment under President Donald Trump. The company aims to go public as early as the first quarter of 2026.
This optimism follows the recent dismissal of a Securities and Exchange Commission lawsuit against Kraken, which had accused the exchange of operating as an unregistered securities broker. The SEC’s decision to drop the case has cleared a significant hurdle for Kraken’s public listing plans.
In a strategic move to diversify its offerings, Kraken agreed last week to acquire NinjaTrader, a U.S.-based retail futures trading platform, for $1.5 billion.
This acquisition is set to enhance Kraken’s capabilities in offering crypto futures and derivatives in the U.S. market, aligning with its broader goals of entering equities trading and payment sectors.
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