Kraken in investment negotiations for $20B valuation before IPO: Report

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Crypto Exchange Kraken is reportedly in talks with a strategic investor to raise funds, which pushes its valuation toward $20 billion ahead of a potential initial public offering (IPO). This development comes from crypto businesses’ IPO Frenzy in the U.S. with the support of U.S. President Donald Trump.

Kraken stays focused, follows a $500 million salary increase and receives new funding

On Friday, Bloomberg reported that Kraken had begun negotiations to increase its value to $20 billion, as part of a fundraising effort, given the planned IPO. Impressively, the move comes after a recent $500 million salary increase that puts Kraken at $15 billion.

Bloomberg first reported Kraken’s IPO valuation in March 2025, noting that the exchange targeted its first quarter of 2026. In addition to capital raising, the U.S.-based trading platform shows other behaviors seen in IPO preparations, such as financial statement disclosures.

In addition, Kraken has expanded its product line beyond digital asset trading, including access to stock and exchange-traded funds. Reported funding negotiations are still underway. Bloomberg is expected to generate a commitment of $20 billion to $300 million, which allows Cracon to reach its target $20 billion valuation by 2026, according to sources familiar with the matter.

Media companies also reported that cryptocurrency exchanges were linked to consulting services from Morgan Stanley and Goldman Sachs Inc. Kraken is now expected to file an S-1 registration statement with the SEC soon, which is expected by any entity aimed at launching a public offering.

Encryption IPO Frenzy continues

Kraken joins a growing list of crypto/blockchain companies seeking public funds. In 2025 alone, and in 2025 alone, four other companies, the USDC issuer circle, blockchain lender figures, and exchanges between Bullish and Gemini, successfully launched an IPO, which shows that a wider range of investors’ interest in digital asset-centric companies.

Trump’s pro-Claputo policy has widely promoted this public market approach. It is worth noting that Republicans have adhered to their commitment to creating a friendly regulatory environment for digital asset operations, as demonstrated by strategic changes in regulators, including the SEC and CFTC.

The 47th U.S. president also generally established federal Bitcoin reserves, prompting state governments to take similar actions. In terms of regulations, Trump also famously signed the Genius Act as a law, creating a regulatory framework for issuance, operation and use.

At press time, the cryptocurrency market capitalization was worth $3.73 trillion after the market crash last week. It is worth noting that in the past 24 hours, a slight recovery of 1.11%.

Featured images from Flickr, charts for TradingView

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