Kraken Eyes $1 Billion Debt Raise to Support Expansion Before 2026 IPO

Crypto exchange teams up with Wall Street behemoths as it amasses war chest to fuel global growth

San Francisco, [Date] – Kraken is said to be in initial talks to raise as much as $1 billion of debt financing, a Bloomberg report says citing unnamed sources. The mooted capital raising comes as the cryptocurrency exchange prepares for an expected 2026 IPO, with Goldman Sachs and JPMorgan Chase managing the deal.

Key Details of the Proposed Fundraising

- Funding Size: $200 million to $1 billion (amount to be finalized later)
- Advisors: Goldman Sachs & JPMorgan holding negotiations with lenders
- Use: Drive growth, not support operating expenses
- Alternative Options: Equity-based fund-raising also being planned

Kraken's Aggressive Expansion Strategy

The debt strategy comes on the heels of Kraken's recent $1.5 billion purchase of US-regulated futures platform NinjaTrader, which it will expand into the UK, Europe, and Australia. The exchange also acquired a MiFID license earlier this year through a Cyprus-based acquisition, allowing for derivatives trading in the European Economic Area.

Financial Snapshot

- 2024 Revenue: $1.5 billion (+128% YoY)
- Earnings: ~$380 million
- User Base: 15+ million accounts
- Last Valuation: $10.8 billion (2021 funding round)

IPO Prospects & Market Position

Although Kraken's valuation declined during the crypto winter, its rebound is consistent with the general market recovery. A successful debt raise might cement its place over rivals such as Coinbase (market cap: $51 billion) before a prospective 2026 public listing.

Why This Matters
- Industry Growth: Signals confidence in crypto’s long-term trajectory
- Regulatory Readiness: Licensing moves position Kraken for global compliance
- IPO Prep: Debt financing could provide flexibility before going public

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