The San Francisco-based crypto exchange Kraken is in talks with two of the largest investment banks, Goldman Sachs and JP Morgan, to raise over $1 billion ahead of the company’s initial public offering.
Talks with Major Banks
Kraken, which has been operating since 2011, is in discussions with Goldman Sachs and JP Morgan Chase to secure funds for the exchange’s expansion. These banks have also initiated conversations with other banks and direct lenders regarding the deal. According to sources familiar with the matter, the funds raised are intended for expansion rather than for any operational needs.
Public Offering Plans
Kraken plans to go public by Q1 2026, following the SEC's withdrawal of a lawsuit against the company. The exchange is speeding up preparations for the IPO amidst President Donald Trump’s crypto-friendly policies in the U.S.
Financial Performance and Future Expansion
In January, Kraken revealed its 2024 financial report, stating its annual revenue increased by 128% to $1.5 billion, with adjusted earnings of nearly $380 million. The exchange also recently announced plans to acquire the futures trading platform NinjaTrader for $1.5 billion.
Kraken’s planned debt financing and upcoming IPO signify its growing ambitions in the global crypto market, amid efforts to expand and enhance its financial performance.
