Kraken, the U.S.-based cryptocurrency exchange, has strengthened its balance sheet with USD$800 million raised in two financing rounds, positioning itself for a planned IPO next year.
Announced on Tuesday, the latest round saw Citadel Securities, the market-making powerhouse, invest in the company, marking a rare move into digital assets for the firm.
The round comes shortly after Kraken closed a USD$600 million financing in September at a USD$15 billion valuation. That earlier round included investors such as Jane Street, DRW, HSG (formerly Sequoia Capital China), Oppenheimer, Tribe Capital, and the family office of Arjun Sethi, Kraken’s co-CEO.
A Kraken spokesperson confirmed the USD$600 million round publicly for the first time, after Bloomberg reported in September that the exchange was considering a new raise at a USD$20 billion valuation from a strategic investor.
Jim Esposito, president of Citadel Securities, said in a statement that the firm is eager to support Kraken’s growth and help improve market operations. In addition, the market maker plans to assist Kraken with risk management and analyzing market structure, according to the release.
Citadel Securities, founded by Ken Griffin, has largely avoided crypto until now, citing regulatory uncertainty. However, after President Donald Trump took office in January, the firm began transacting on platforms including Coinbase Global (NASDAQ: COIN), Binance, and Crypto.com.
Earlier this month, Ripple, the blockchain company tied to XRP, raised USD$500 million from Citadel, and other investors. Meanwhile, Kraken intends to use the new capital to expand outside North America and launch new payments products.
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Kraken has made notable acquisitions since January
Prior to these rounds, the company had only raised USD$27 million in venture capital. Kraken, founded in 2011, often trails competitor Coinbase in U.S. brand recognition. However, the exchange focuses on institutional traders and has steadily grown its operations. In the third quarter, Kraken more than doubled year-over-year revenue to USD$648 million, the company reported in October.
Since January, Kraken has made a series of notable acquisitions, including the USD$1.5 billion purchase of futures trading platform NinjaTrader. In November, co-CEO Sethi said the company has sufficient capital on hand and is not rushing to go public.
Furthermore, Kraken’s growing financial and strategic partnerships demonstrate a broader trend of traditional market players warming to digital assets. The Citadel Securities investment signals confidence in Kraken’s ability to navigate complex markets while expanding its offerings.
Since Donald Trump’s election in November 2024, the cryptocurrency sector has seen significant growth and renewed optimism. Bitcoin surged sharply, topping record highs, as investors anticipated looser regulations and even the potential for a national bitcoin reserve.
The total crypto market value climbed past $3 trillion, driven by institutional demand and inflows from retail investors. Companies such as Strategy (NASDAQ: MSTR) aggressively raised capital to purchase additional bitcoin.
On the policy side, Trump nominated crypto friendly officials to key regulatory posts. The Department of Justice also reduced enforcement efforts on certain cryptocurrency exchanges and wallets, effectively easing pressure on the sector.
