Cryptocurrency platform Kraken has announced a significant valuation of $20 billion following its latest funding round, in which it raised a total of $800 million. This update was shared in a press release on Tuesday, highlighting the company’s growth trajectory and ambitious plans.
The announcement comes just two months after Kraken was reported to be valued at $15 billion during a funding round that concluded in September, bringing in $500 million. The latest influx of capital is set to propel Kraken’s efforts to integrate traditional financial products onto blockchain technology.
In its press release, Kraken outlined that the new funds will not only support its plan to expand its product offerings but also facilitate strategic acquisitions. The company aims to bolster its regulated presence, enter new markets across regions such as Latin America, the Asia Pacific, Europe, the Middle East, and Africa, and continue expanding its services beyond cryptocurrency.
Kraken’s Co-CEO Arjun Sethi expressed optimism about the investment, stating that it reflects a long-term commitment to the company’s mission of developing trusted, regulated infrastructure for an open financial system. He emphasized the goal of creating a versatile platform that enables users to trade various assets anytime and anywhere.
A notable part of this funding round is the involvement of Citadel Securities, which contributed $200 million. Citadel Securities President Jim Esposito expressed enthusiasm about supporting Kraken’s growth and the potential of digital innovation in markets.
In October, Kraken made headlines with its acquisition of Small Exchange, a Commodity Futures Trading Commission-licensed designated contract market, for $100 million. This strategic move is expected to enhance Kraken’s global trading infrastructure and pave the way for a complete U.S.-native derivatives product suite.
Additionally, in September, Kraken added to its portfolio by acquiring trading firm Breakout, aimed at enhancing its offerings for advanced traders. Breakout provides qualified individuals access to substantial notional capital upon meeting rigorous performance criteria. Earlier in August, Kraken took a further step into innovation by acquiring Capitalise.ai, a trading automation firm known for its natural language platform that turns everyday text into actionable trading strategies. This functionality is set to be integrated into Kraken’s own trading product, Kraken Pro.
Overall, these developments signify Kraken’s strategic focus on growth and innovation in the competitive cryptocurrency landscape.
