One of the leading cryptocurrency exchanges, Kraken, has successfully secured a substantial investment of $200 million from Citadel Securities, a prominent name in the financial sector. This strategic investment values the Wyoming-based crypto exchange at an impressive $20 billion, according to a Kraken spokesperson.
This funding round follows closely behind an earlier financing effort in September, where Kraken raised $600 million at a $15 billion valuation. That round garnered support from notable Wall Street and Silicon Valley investors, including Jane Street, DRW, HSG (previously known as Sequoia Capital China), Oppenheimer, Tribe Capital, and the family office of co-CEO Arjun Sethi. The spokesperson confirmed the $600 million round for the first time to Fortune, while Bloomberg had initially reported in September that Kraken was exploring a new raise at the higher valuation.
Citadel Securities’ president, Jim Esposito, expressed enthusiasm for the investment, stating, “We’re excited to support Kraken’s continued growth as it helps shape the next chapter of digital innovation in markets.” The partnership aims to enhance risk management and market structure analysis, among other initiatives.
The investment marks a significant shift for Citadel Securities, which has largely steered clear of the crypto market due to regulatory uncertainties in the United States. Founded by Ken Griffin, the firm began considering transactions on major crypto exchanges like Coinbase, Binance, and Crypto.com in the past couple of years. This interest in digital assets was underscored by Ripple’s recent $500 million fundraising, which included Citadel and other investors.
With a total of $800 million raised across its recent financing rounds, Kraken is well-positioned to strengthen its balance sheet ahead of a planned initial public offering (IPO) next year. The added capital will enable the exchange to expand its reach beyond North America and develop new payment products, among other strategic priorities.
Kraken, launched in 2011, has traditionally operated in the shadow of its competitor Coinbase, which has secured a more recognizable presence in the U.S. Nonetheless, Kraken has established a robust business model, particularly targeting institutional traders. The exchange reported a remarkable revenue increase, doubling its figures year-over-year to $648 million in the third quarter.
In addition to its funding successes, Kraken has made notable acquisitions, such as its $1.5 billion purchase of the futures trading platform NinjaTrader earlier this year. Co-CEO Arjun Sethi emphasized the company’s current financial stability, stating that they do not feel pressured to rush into an IPO despite the substantial capital on their balance sheet.
