The cryptocurrency exchange Kraken is in advanced talks with Wall Street titans Goldman Sachs and JPMorgan Chase to raise up to $1 billion in debt financing.
This move, reported by Bloomberg, signals the company’s aggressive push toward a potential initial public offering (IPO) as early as 2026. Furthermore, the platform is also weighing an equity raise, though details remain fluid.
Why Kraken Is Turning to Debt Financing
Kraken aims to use the capital to accelerate expansion, not to shore up daily operations. The funds could fuel new products, global market entry, and technology upgrades.
Additionally, the debt raise, which might start at $200 million, offers flexibility without immediately diluting shareholder value. With crypto markets rebounding in 2025, Kraken seeks to capitalise on renewed investor confidence.
Regulatory Winds Shift in Kraken’s Favor
A dismissed SEC lawsuit has cleared a critical path for Kraken’s IPO ambitions. The agency had accused the exchange of operating as an unregistered securities broker but dropped the case in June 2025.
This follows a broader regulatory relaxation under the Trump administration, which has adopted a more crypto-friendly stance. As a result, Kraken now eyes a Q1 2026 IPO, pending market conditions.
Financial Firepower: Kraken’s Surging Revenue and Expansion
Kraken’s 2024 revenue skyrocketed 128% to $1.5 billion, with adjusted EBITDA hitting $380 million. The platform boasts over 10 million users across 190 countries and processes $207 billion in quarterly trading volume.
Such metrics position it as a top rival to Coinbase, the only major U.S. crypto exchange currently publicly traded. Furthermore, Kraken’s 2024 pre-IPO funding round explored raising $100 million, following its growth trajectory.
NinjaTrader Acquisition Strengthens Market Position
Last week, Kraken agreed to buy retail futures platform NinjaTrader for $1.5 billion. The deal expands its U.S. derivatives offerings, including crypto futures, and aligns with ambitions to enter equities and payments.
By diversifying, Kraken could attract institutional investors and hedge against crypto volatility. This acquisition also signals readiness to compete with traditional finance giants.
A New Era for Crypto IPOs?
Kraken’s potential debut would mark the largest crypto IPO since Coinbase’s 2021 listing. Success could reignite public market interest in digital asset firms, especially as regulatory clarity improves.
However, challenges linger: market swings, evolving regulations, and investor skepticism post-2022 crypto crash. Still, Kraken’s debt raise and strategic moves suggest confidence in weathering these risks.
Conclusion
As Kraken navigates its pre-IPO phase, collaboration with Goldman Sachs and JPMorgan highlights Wall Street’s growing crypto embrace. With robust finances, regulatory tailwinds, and strategic acquisitions, the exchange is poised to redefine crypto’s role in global markets.
Whether it sparks an IPO wave, however, hinges on sustained momentum and Kraken’s ability to stay ahead of the curve.
Written By Fazal Ul Vahab C H
