Kraken raises $200 million, valuation reaches $20 billion with Citadel Securities investing
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Kraken raises $200 million, valuation reaches $20 billion with Citadel Securities investing
Kraken primarily targets institutional traders and, although less well-known in the U.S. market than its competitor Coinbase, has established a solid business foundation.
Navigating Web3 tides with focused insightsBy: Zhao Ying
Source: Wall Street Horizon
Kraken, one of the world's largest cryptocurrency exchanges, has received a $200 million strategic investment from Citadel Securities, a top Wall Street market maker, bringing its valuation to $20 billion—a fresh sign of traditional financial giants accelerating their embrace of digital assets.
According to media reports on Wednesday, a Kraken spokesperson confirmed the funding round. Previously, the exchange raised $600 million in September last year at a $15 billion valuation, with investors including Jane Street, DRW, Sequoia China, Oppenheimer, Tribe Capital, and the family office of Kraken co-CEO Arjun Sethi.
This latest financing comes just months after the company’s prior round. Together, the two rounds total $800 million, strengthening Kraken’s capital base ahead of its planned IPO next year.
Jim Esposito, President of Citadel Securities, said in a statement, "We are excited to support Kraken’s continued growth and help shape the next chapter of digital innovation in markets." According to the press release, the market maker will collaborate with Kraken on areas such as risk management and market structure analysis.
Citadel Securities Accelerates Digital Asset Push
Citadel Securities’ investment in Kraken marks the clearest signal yet from one of America’s largest market makers toward digital assets.
Founded by Ken Griffin, Citadel Securities has historically avoided market-making or investing in crypto exchanges due to regulatory uncertainty in the U.S. However, following President Trump’s inauguration in January this year, the firm announced plans in February to begin trading on platforms like Coinbase, Binance, and Crypto.com, according to media reports.
Earlier this month, long-time blockchain firm Ripple announced a $500 million raise from Citadel, asset manager Fortress Investment Group, and other investors. The company is closely tied to the cryptocurrency XRP.
Building Capital for IPO
The $800 million raised across the two funding rounds will further strengthen Kraken’s balance sheet ahead of its planned IPO next year. Prior to these rounds, Kraken had raised only $27 million in venture capital.
According to the press release, the exchange intends to use the new funds to expand into markets beyond North America and develop new payment products.
Founded in 2011, Kraken is less well-known in the U.S. than rival Coinbase, but the institution-focused exchange has built a solid business foundation. In October last year, it reported that third-quarter revenue more than doubled year-on-year to $648 million.
Aggressively Expanding Business Footprint
Since January this year, Kraken has also made several high-profile acquisitions, including the $1.5 billion purchase of futures trading platform NinjaTrader.
Last November, when asked about the company’s IPO plans, co-CEO Sethi stated, "As a private company, we have sufficient capital on our balance sheet today—we don’t feel the need to rush toward an IPO."
Last September, media first reported that Kraken was considering a new funding round from strategic investors at a $20 billion valuation. This time, the Kraken spokesperson publicly confirmed for the first time the details of the $600 million funding round.
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