Kraken is still pursuing a U.S. initial public offering despite a sharp drop in valuation and recent market turbulence, co-CEO Arjun Sethi said Tuesday.
He confirmed the crypto exchange confidentially submitted a draft S-1 registration to the U.S. Securities and Exchange Commission in November. However, it did not set a timeline for the offering at that time.
Sethi spoke at the Semafor World Economy conference in Washington, D.C., where he described Kraken’s long-term strategy. He said the firm aims to open advanced trading tools to everyday investors.
Additionally, Kraken has adjusted its plans after a difficult period for digital assets. The company reportedly paused its IPO efforts less than a month ago during a broader crypto downturn. Bitcoin prices had fallen sharply from earlier highs, which weighed on investor sentiment. However, the flagship cryptocurrency has recently rebounded and climbed to about USD$76,000 this week.
Furthermore, bitcoin is now up roughly 9 per cent for April, signaling renewed momentum. The price recovery has improved conditions for crypto-linked firms considering public listings. Kraken’s valuation has also shifted alongside the broader market. It now sits near USD$13.3 billion, down from about USD$20 billion in November.
Meanwhile, Deutsche Börse AG (ETR: DB1) agreed to invest USD$200 million for a 1.5 per cent fully diluted stake. That transaction implies the current valuation level. Additionally, Kraken completed a secondary deal tied to the same investment, expanding its institutional backing. The company has attracted growing interest from large financial players.
Since mid-2025, Kraken has raised approximately USD$600 million in funding rounds. Those rounds included backing from trading firms Jane Street and DRW.
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Market volatility affects company’s ambitions
In addition, hedge fund manager Citadel contributed USD$200 million in a separate investment. These deals reflect increasing institutional participation in the crypto sector. Earlier funding levels were far smaller by comparison. Between 2011 and 2024, Kraken raised only about USD$27 million in early-stage capital.
However, market volatility has continued to affect the company’s public market ambitions. Crypto prices remain sensitive to macroeconomic conditions and regulatory developments. Sethi said the IPO remains an option as Kraken monitors market conditions. He indicated the company will move forward when timing improves.
Meanwhile, rival exchange Gemini Space Station (NASDAQ: GEM) has struggled in public markets. Its stock has fallen nearly 49 per cent, although shares have gained about 15 per cent this month. Consequently, Kraken faces a mixed environment as it weighs its next steps. Investors have shown renewed interest, but uncertainty still shapes the timing of any listing.
