Kraken Enters New Growth Phase With $800M Raise and a $20B Valuation
Kraken is moving into a major new stage of growth as it pushes deeper into on-chain financial services. The company has raised $800 million in two separate funding rounds, boosting its valuation to $20 billion and giving it the backing it needs to expand into global markets, tokenized products, and more regulated trading services.
A Stronger Balance Sheet and Major Institutional Support
In its announcement posted on Nov. 18, Kraken said the first funding tranche was led by well-known institutional investors including Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital. Kraken Co-CEO Arjun Sethi’s family office also made a significant commitment.
The second tranche came from Citadel Securities, which invested $200 million at the confirmed $20 billion valuation. This gives Kraken one of its strongest financial backings to date.
Kraken pointed out that before this raise, it had only collected about $27 million in primary capital. Even so, it remained profitable, generating $1.5 billion in revenue in 2024 and surpassing that amount within the first three quarters of 2025.
Sethi said on X that this raise reflects long-term belief in Kraken’s future, not short-term market trends. He highlighted that more than $100 million of the funding came from his own family office, showing personal confidence in the company’s roadmap.
Building Out Derivatives, Tokenized Assets, and New Products
The new funding follows several important updates across Kraken’s ecosystem.
On Nov. 14, the company reported strong Q3 numbers, including $198 million in adjusted EBITDA—up 28% from the previous quarter—and more than $1.5 billion in revenue over the first nine months of 2025.
Kraken also completed its latest proof-of-reserves audit, confirming that all major assets are backed 1:1 or more. This was the first audit to include its new distributed validator technology for Ethereum staking.
The company expanded its U.S. derivatives footprint as well, completing major acquisitions:
- NinjaTrader
- Small Exchange, a $100 million deal closed in early October
These moves strengthen Kraken’s ability to offer crypto futures alongside existing stock and commodity contracts.
Kraken also launched a colocation service with Beeks Exchange Cloud, designed to improve speed and access for institutional and high-frequency traders.
What’s Next for Kraken
Looking ahead, Kraken plans to expand into:
- Latin America
- Asia-Pacific
- Europe, the Middle East, and Africa (EMEA)
The company also plans to:
- Launch more asset types
- Improve staking services
- Add new trading tools
- Grow its payments systems
- Build more products for institutional clients
Kraken says all of this is part of its broader mission: to connect traditional finance with open, on-chain finance through global, regulated infrastructure.
