Breaking: Kraken Files Confidential Draft S-1 For U.S. IPO With SEC

The process of the Kraken IPO has begun with the crypto exchange filing a confidential draft S-1 with the U.S. Securities and Exchange Commission (SEC). This follows recent filings by Grayscale and BitGo, which are also looking to go public in the U.S.

Kraken IPO Process Kicks Off With Draft S-1 Filing

In a blog post, the crypto exchange announced that it has confidentially submitted a draft registration statement on Form S-1 with the SEC, relating to the proposed IPO of its common stock. The company stated that it has yet to determine the number of shares and the price range for the proposed offering.

Meanwhile, the Kraken IPO is expected to take place after the SEC completes its review process, subject to market and other conditions. Once the SEC provides feedback on the draft S-1, the crypto exchange will file a public S-1 containing more information about the IPO before it finally goes public.

This will include information about the number of class A common shares it plans to offer and the price range. It will also include other details, such as the ticker and the exchange it intends to list on.

The Kraken IPO filing follows Grayscale’s S-1 filing for a U.S. IPO. Just like the crypto exchange, the crypto asset manager is also looking to go public amid regulatory clarity and increased crypto adoption among institutional investors. Crypto custodian BitGo is also looking to go public and has filed its S-1 for the IPO, just like Grayscale.

Notably, firms such as USDC issuer Circle, Bullish, and Gemini already held U.S. IPOs earlier this year, with all offerings oversubscribed, highlighting the demand for crypto exposure among these institutional investors.

Exchange Raises New Capital at $20 Billion Valuation

The Kraken IPO filing also comes just a day after the crypto exchange announced that it had reached an agreement for a $200 million strategic investment from Citadel Securities at a $20 billion valuation. This was part of an $800 million raise, which Kraken noted was across two tranches as it looks to accelerate its strategy of bringing traditional financial products on-chain.

Institutional investors, including Jane Street, DRW Venture Capital, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital, led the primary tranche. The company’s Co-CEO, Arjun Sethi’s, family office also participated in the round.

This latest funding round comes just less than two months after Kraken raised $500 million at a $15 billion valuation, representing a 33% increase. With this, the crypto exchange is likely to conduct its IPO at a higher valuation.

As part of yesterday’s announcement, Kraken revealed that it generated $1.5 billion in revenue in 2024 and has surpassed that figure within the first three quarters of this year. This marks a positive for the company as it targets its public listing, which is likely to happen next year.