Kraken Mulls Over $1 Billion Debt Acquisition Prior to Possible IPO: Report
The digital currency exchange Kraken is reportedly contemplating the option to secure up to $1 billion in debt as it gears up for a prospective initial public offering (IPO), as stated in a Bloomberg report citing unnamed sources.
The capital raise is currently in preliminary phases, with Kraken collaborating with financial powerhouses Goldman Sachs and JPMorgan Chase. According to the sources, the two institutions have started contacting additional banks and direct lenders to assess their interest.
Although the targeted figure is $1 billion, one source mentioned that the actual amount raised might be considerably less—possibly around $200 million.
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Kraken’s $1B Debt Strategy Aimed at Promoting Growth
The debt acquisition aims to bolster Kraken’s growth strategy rather than finance operating expenses. The company is also evaluating a possible equity raise as part of its extensive capital strategy, though no final decisions have been made and conditions are still subject to modification.
Located in San Francisco and officially under the name Payward Inc., Kraken is headed by co-CEOs Arjun Sethi and David Ripley. Reports suggest that the company is looking at a public listing as early as the first quarter of next year, amid an increasingly favorable regulatory climate under the current U.S. administration.
In January, Kraken revealed that its 2024 revenue had soared to $1.5 billion, marking a 128% increase year-over-year. The company also indicated an adjusted EBITDA of $380 million.
As previously reported, the exchange is preparing for an initial public offering (IPO) potentially in the first quarter of 2026.
Bloomberg: Crypto trading platform Kraken reportedly aims for IPO as early as Q1 next year
Kraken IPO incoming! This will provide them with substantial marketing and funding to invest in Ink! pic.twitter.com/yUAu2VLPEB
— Ink Wizard (@0xInkWizard) March 8, 2025
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Kraken Approaches $1.5B Acquisition Of NinjaTrader To Broaden US Crypto Futures
Kraken made announcement recently after reaching an agreement toacquire the retail futures exchange NinjaTrader in a deal valued at $1.5 billion. An official announcement could occur as soon as March 20, 2025.
This potential acquisition follows closely on the heels of the U.S. Securities and Exchange Commission (SEC) dropping its lawsuit against Kraken on March 3.
The lawsuit had alleged that Kraken was functioning as an unregistered broker, dealer, and exchange, but it was dismissed without penalties or required alterations to Kraken’s operations.
The regulatory landscape in the U.S. is evolving towards more crypto-friendly policies, with President Donald Trump promising to establish the U.S. as the “crypto capital” of the globe. Kraken stands to benefit from this trend as it seeks to broaden its operations.
Established in 2011 by Thanh Luu, Michael Gronager, and former CEO Jesse Powell, Kraken continues to be a significant entity in the crypto trading protocol sector.
Under the leadership of current CEO Amir Orad, Kraken ranks among the top seven to 15 largest crypto exchanges by spot trading volume, managing daily transactions ranging from $390 million to $4.4 billion, based on CoinGecko data.
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Key Takeaways
- Kraken is contemplating raising up to $1 billion in debt to facilitate growth in anticipation of a potential IPO.
- The fundraising initiative is still in initial stages, with involvement from Goldman Sachs and JPMorgan.
- Kraken’s growth aspirations include a $1.5B acquisition of NinjaTrader and potential IPO scheduled for early 2026.
The post Kraken Considers $1 Billion Debt Raise Ahead Of Potential IPO: Report appeared first on 99Bitcoins.
