Kraken Eyes $1B Debt Raise Ahead of Potential IPO Amid Regulatory Shift

Kraken, a top global cryptocurrency exchange, is reportedly seeking to raise $1 billion in debt to fuel its expansion, according to Bloomberg. The move comes amid growing speculation about the exchange’s long-awaited initial public offering (IPO), which could take place within a year.

The debt fundraising effort is being led in collaboration with major financial institutions JPMorgan and Goldman Sachs. In addition to the debt raise, Kraken is also planning an equity funding round to further strengthen its financial position ahead of its potential public debut.

Kraken’s IPO ambitions have been brewing for years. The company was previously expected to go public via a SPAC merger in 2022, but plans were delayed. However, with regulatory pressures easing—especially after the U.S. Securities and Exchange Commission (SEC) dismissed its lawsuit against Kraken in March—market conditions now appear more favorable for a listing.

To bolster its IPO readiness, Kraken appointed financial veteran Carrie Dolan as its Chief Financial Officer in 2022. Dolan successfully led LendingClub's IPO in 2015, one of the largest internet public offerings at the time, signaling Kraken’s serious intent.

In a strategic push to bridge traditional and digital finance, Kraken recently announced its $1.5 billion acquisition of futures broker NinjaTrader, further positioning itself as a dominant force in both crypto and traditional markets.

With its aggressive growth strategy, institutional partnerships, and a shifting regulatory landscape, Kraken is emerging as a strong contender for a high-profile IPO—potentially following in the footsteps of Coinbase, which went public in 2021.

As investor interest in crypto rebounds, Kraken’s latest moves could significantly reshape the crypto exchange landscape and drive momentum in the sector.