Kraken Gears Up for IPO with $1 Billion Debt Raise and Major Acquisition

Kraken is making a bold move to accelerate its growth, reportedly seeking to raise $1 billion in debt as it prepares for a potential public listing.

According to Bloomberg, the cryptocurrency exchange is working with financial powerhouses JPMorgan and Goldman Sachs to secure funding, while also considering an equity raise to further strengthen its financial position.

The idea of Kraken going public has been circulating for years. Initially, the exchange planned to enter the public markets in 2022 through a SPAC merger, but those plans were postponed. Now, with a seemingly more favorable regulatory landscape, Kraken may be ready to take the next step.

The appointment of Carrie Dolan as CFO in 2022 was a strong indication of its IPO ambitions, given her track record of managing LendingClub’s 2015 public debut, which was one of the largest internet IPOs in U.S. history.

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Beyond its IPO ambitions, Kraken has been actively expanding its presence in the broader financial sector. Earlier this month, the company made a major move by acquiring futures broker NinjaTrader in a $1.5 billion deal, signaling its push into traditional finance.

With Coinbase setting a precedent by going public in 2021, Kraken appears to be positioning itself as the next major crypto exchange to take the leap into the stock market.

Alexander Zdravkov