Kraken Confirms IPO Filing, but Valuation Dropped 33% in Latest $200M Funding

American crypto exchange giant Kraken confidentially filed for an initial public offering (IPO) late last year, its co-CEO, Arjun Sethi, revealed during the Semafor World Economy event in Washington, DC. However, the specifics of the IPO, including valuation and offer size, still remain unknown.

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The exchange also raised $200 million from Deutsche Börse Group, Bloomberg reported, at a valuation of $13.3 billion, which was below the $20 billion peak valuation it achieved in late 2025. In exchange for the investment, the German exchange group received a 1.5 per cent fully diluted stake in the crypto exchange.

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Aim at an IPO Persists

The parent company of Kraken has been mulling going public for some time now. It first submitted a confidential draft Form S-1 with the Securities and Exchange Commission (SEC) in November 2025.

The exchange raised $800 million from investors like Jane Street and Citadel Securities at its peak valuation after that confidential draft filing.

However, the company’s IPO plans did not materialise, as reports suggested it paused going public around March due to market conditions. The latest statement from Sethi indicates that the exchange never shelved the plan.

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Meanwhile, the revenue of the crypto exchange also jumped 33 per cent in 2025 to reach more than $2.2 billion, which, according to the company, was driven by “a broad-based performance across trading and asset-based businesses.” Of the total revenue, about 47 per cent came from trading activities.

Crypto trading activity also increased on the US-based platform, with total transaction volume reaching $2 trillion, a 34 per cent increase. Assets on the platform rose by 11 per cent to $48.2 billion.

Expansion Drive Continues

Although headquartered in the US, Kraken also appears to be expanding globally. It obtained a MiFID II licence by acquiring a Cyprus-based broker last year and launched crypto perpetual contracts through the entity for European users.

The expansion in products, as well as the offering of tokenised stocks, shows a strong focus on that area. Within months of launch, tokenised stocks on its platform reached more than $5 billion across both centralised and decentralised venues, and the number of users passed 37,000. Both figures are likely higher now.