Cryptocurrency exchange Kraken has raised $800 million in a dual-tranche funding round that values the company at $20 billion, representing a 33% increase from its September valuation of $15 billion, the company announced Tuesday.
The primary tranche was led by institutional investors including Jane Street, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital, co-founded by Kraken co-CEO Arjun Sethi. Citadel Securities contributed $200 million in a strategic investment as the second tranche.
The fundraise represents a significant personal commitment from Sethi, who disclosed that through Tribe Capital and his family office, he invested more than $100 million in the first tranche when Kraken had previously raised only $27 million in primary capital. The investment came after Sethi joined Kraken full-time as co-CEO, following years of backing the company through Tribe.
"This journey has never been about being right in a single moment. It has always been about staying right over the long run," Sethi said in a post on LinkedIn, describing the shared vision between Kraken and Tribe for "a unified liquidity and collateral system" and "a global platform that brings traditional and open finance together for everyone."
The fundraise comes as digital asset firms continue to attract investor interest amid expectations of a more crypto-friendly regulatory environment under President Trump, who has signaled support for clearer rules for the industry. Exchanges including Gemini and Coinbase, as well as crypto firm Ripple, have benefited from the shifting regulatory tone.
Sethi's backing of Kraken deepened during the 2022 crypto market collapse, when U.S. markets lost nearly $11 trillion in value and crypto lost more than $1 trillion. Despite pressure from some limited partners to exit crypto investments following the FTX collapse, Tribe Capital deployed more capital during 2022, 2023, and 2024 than in previous years, according to Sethi.
Kraken's valuation exceeds recently listed public peers Bullish and Gemini, both of which have struggled since their market debuts.
The announcement coincides with recent volatility in crypto prices following a prolonged rally led by bitcoin, as markets react to uncertainty about future U.S. interest rate cuts and broader risk-averse sentiment.
Kraken has been expanding its operations and product offerings. Last month, the company acquired futures exchange Small Exchange from IG Group for $100 million, enabling it to launch a fully U.S.-based derivatives suite.
