Cryptocurrency exchange Kraken is in advanced talks with a strategic investor for a funding round valuing the company at $20 billion. According to a report from Bloomberg, this deal aims to strengthen the company’s balance sheet, accelerate its acquisition strategy, and pave the way for a potential initial public offering (IPO).
The capital injection is a calculated move to solidify its position in a highly competitive market. Kraken seeks funding not only for growth but also to bolster its compliance teams. Furthermore, the involvement of a strategic investor could open doors to new institutional counterparties, thereby limiting the regulatory risks that have affected other companies in the sector ahead of an eventual stock market debut.
Strategic Expansion in a Complex Regulatory Environment
This pursuit of capital fits perfectly into an aggressive expansion phase for Kraken. The firm has already demonstrated its intent to grow with the key acquisition of NinjaTrader for $1.5 billion in May 2025, a transaction that added nearly 2 million users and, crucially, brought an FCM license allowing it to operate futures in the United States. This is in addition to the acquisition of proprietary trading firm Breakout. The company’s revenues reflect sustained year-over-year growth, reaching approximately $1.5 billion in 2024 and $472 million in the first quarter of 2025 alone, showcasing its resilience amid intense regulatory scrutiny.
However, a significant challenge looms on the horizon. The U.S. Securities and Exchange Commission (SEC) has an active lawsuit against Kraken, accusing it of allegedly operating as an unregistered securities exchange. This regulatory risk is a critical factor that the new funding round aims to mitigate, at least in part, by allocating resources to strengthen its legal defenses and compliance structure. Consequently, while Kraken seeks funding for expansion, it is also doing so to shield itself.
The secured capital would have a multifaceted impact on Kraken’s operations. On one hand, it would significantly increase the platform’s liquidity and solvency, giving it leeway for new strategic acquisitions and to accelerate the development of tokenization-based products, a key area on its roadmap. On the other hand, a portion of the funds could be used to reduce operational risk, especially by consolidating the licenses obtained through NinjaTrader. However, the funding would not eliminate exposure to the inherent volatility of the cryptocurrency market.
Kraken maintains its goal of going public in 2026, but the execution of this plan is directly dependent on closing this funding round, the evolution of the SEC case, and overall market conditions. The next step, according to sources, will be to finalize negotiations and formally announce the strategic investor who will accompany Kraken in this new stage. In this way, the company is preparing for a future full of opportunities and regulatory challenges.
