Another crypto giant is making waves with its IPO, as Kraken submits its IPO application with a valuation of $20 billion

Author: Chloe, ChainCatcher

On November 19, the well-known cryptocurrency exchange Kraken officially submitted a confidential S-1 registration statement draft to the U.S. Securities and Exchange Commission, intending to issue common stock, with the number of shares and price range yet to be determined. The initial public offering is expected to take place after the SEC completes its review process, with the specific timing depending on market conditions and other factors.

The day before the company submitted the S-1 form, Kraken also announced the completion of an $800 million financing in two phases, reaching a valuation of $20 billion.

Before advancing with the IPO, Kraken has undertaken several global expansion initiatives. Last month, Kraken announced the acquisition of the designated contract market Small Exchange, regulated by the U.S. Commodity Futures Trading Commission (CFTC), for approximately $100 million. This not only expands Kraken's compliance footprint but also aims to strengthen its IPO positioning, and this application submission confirms Kraken's confidence in market timing.

Deepening Global Layout After Completing $800 Million Financing

In recent years, Kraken has expanded into multiple global markets, offering over 450 types of digital asset trading, traditional futures, stocks, ETFs, and various fiat currency support. Its product line includes Kraken App, Kraken Pro, Kraken Institutional, etc., covering the needs of both retail and institutional users.

According to Kraken's Q3 financial report, the third quarter achieved revenue of $648 million, a 47% increase from the previous quarter; EBITDA grew by 124%, with a profit margin of 27.6%; platform trading volume reached $561.9 billion, an increase of 23%; total assets amounted to $59.3 billion, a 34% increase. These strong performances provide a foundation for its financing and IPO.

Looking back at the details of this financing, Kraken's $800 million fundraising was completed in two phases. The first phase was led by institutional investors, including well-known firms such as Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital, along with financial support from the family office of Kraken co-CEO Arjun Sethi, with a valuation of $15 billion. The second phase involved a $200 million strategic investment from Citadel Securities, with a valuation of $20 billion.

At the same time, this round of financing has pushed Kraken's valuation to $20 billion. In comparison, Coinbase currently has a public market capitalization of $69.4 billion, with third-quarter revenue three times that of Kraken, while Ripple's valuation from last month's financing was $40 billion.

According to the official report, Kraken plans to use the funds from this financing to expand its global operations, targeting emerging markets in Latin America, Asia-Pacific, and Europe, the Middle East, and Africa, while also expanding its product offerings beyond cryptocurrencies.

In recent months, Kraken has integrated U.S. futures trading (through the acquisition of NinjaTrader), launched stock and tokenized stock trading, and introduced the global payment, savings, and investment application KRAK, aiming to fully integrate traditional financial product lines onto the blockchain.

Polymarket Predicts Kraken Will Complete IPO by End of March Next Year

Yesterday, Kraken submitted a draft S-1 form to the SEC under Payward Inc., proposing a public offering of common stock. Although the number of shares and price range have yet to be determined, this confidential submission allows the company to prepare and review internally without immediately disclosing details, with the IPO expected to occur after the SEC completes its review, depending on market conditions.

Kraken has long intended to go public. In early 2021, co-founder Jesse Powell revealed that Kraken's goal was to go public in early 2022. Despite its main competitor Coinbase having gone public four years ago, Kraken has yet to take any substantial actions. This application submission shows Kraken's confidence in market timing, especially against the backdrop of an improving regulatory environment.

On X, @baeko_02 shared Polymarket's predictive market data, referencing history, noting that Bullish went public two months after submitting IPO documents, Gemini about six months later, and the market expects Kraken's IPO to be a focal event in early 2026.

According to the latest data from Polymarket, traders predict that the likelihood of Kraken completing its IPO by December 31 of this year is only 4%, while the probability for March 31, 2026, is 69%, reflecting the market's consensus on Kraken's IPO timeline.