Kraken is reportedly aiming to secure up to $1 billion in debt financing as it gears up for a potential initial public offering, according to a report from Bloomberg News that references sources with knowledge of the situation.
Goldman Sachs and JPMorgan are spearheading the fundraising initiatives and purportedly engaging in preliminary discussions with other banks and direct lenders. Although the target for the debt issuance is $1 billion, one insider suggested that a smaller amount, possibly as minimal as $200 million, is also being considered.
The proceeds from this fundraising would be directed towards expansion efforts rather than immediate operational expenses. Representatives from Kraken, Goldman Sachs, and JPMorgan declined to provide any comments.
Strategic positioning ahead of IPO
The same sources indicated that Kraken might also explore an equity raise in tandem with the debt issuance, although the specifics regarding the size and structure of this capital raise are still undecided.
The report highlighted that the company has yet to finalize any decisions, and that terms may evolve as discussions continue.
These speculations have arisen amidst reported talks of a Kraken initial public offering (IPO) possibly taking place as soon as the first quarter of 2026.
Furthermore, the exchange recently announced that it achieved $1.5 billion in revenue for 2024, marking a 128% rise compared to the previous year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $380 million.
NinjaTrader acquisition
As noted on the exchange’s official website, it caters to over 10 million users across 190 countries and boasts quarterly trading volumes exceeding $207 billion as of March.
Recently, Kraken announced a $1.5 billion acquisition of NinjaTrader, a trading platform aimed at retail futures. This deal is designed to enhance Kraken’s derivatives offerings and follows earlier conversations about obtaining pre-IPO financing.
In addition to this acquisition, Kraken disclosed that it manages nearly $43 billion in customer assets and averages over $2,000 in revenue per customer.
The upcoming debt issuance aims to strengthen Kraken’s financial framework as it considers strategies for growth and the transition to public markets.
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