Kraken Explores $1 Billion Debt Raise in IPO Preparations

Cryptocurrency exchange Kraken is reportedly exploring raising up to $1 billion in debt to fuel its expansion plans as it gears up for a potential initial public offering (IPO) as early as the first quarter of next year.

According to a Bloomberg report citing individuals with knowledge of the matter, Kraken is working with financial giants Goldman Sachs and JPMorgan Chase on this potential debt raise.

The discussions are currently in the preliminary stages, with Goldman Sachs and JPMorgan reportedly initiating conversations with other banks and direct lenders to participate in the effort. Sources indicate that the debt being considered is specifically intended to support the company's growth initiatives and is not for operational needs. While the potential size of the debt raise is up to $1 billion, one source suggested that the final amount could be as low as $200 million.

Bloombergalso noted that Kraken is considering raising equity in addition to the debt package, although no final decisions have been made regarding the terms or the size of the capital raise, which remain subject to change. Representatives for Kraken, Goldman Sachs, and JPMorgan declined to comment on the matter.

Founded in 2011 and headquartered in San Francisco, Kraken, officially known as Payward Inc., is led by co-chief executive officers Arjun Sethi and David Ripley. The potential debt raise comes as Kraken is preparing for a possible IPO as early as the first quarter of 2026, encouraged by a more favorable regulatory environment for the cryptocurrency industry in the United States under President Donald Trump.

Kraken's potential debt raise comes on the heels of several significant developments for the exchange. Just last week, reports emerged that Kraken had agreed to acquire retail futures trading platform NinjaTrader in a deal valued at $1.5 billion . This acquisition is widely seen as a strategic move to enable Kraken to offer cryptocurrency futures and derivatives trading to its U.S. customer base by leveraging NinjaTrader’s Futures Commission Merchant (FCM) license.

Prior to the NinjaTrader news, there were reports of Kraken's interest in acquiring Deribit , the world’s leading crypto options exchange. These discussions, while ultimately not resulting in a deal, also underscored Kraken's ambition to expand its offerings in the lucrative cryptocurrency derivatives market.

In addition to its potential U.S. expansion through NinjaTrader, Kraken has also been actively pursuing growth in other regions. Last month, the exchange acquired a company in Cyprus to obtain a Markets in Financial Instruments Directive (MiFID) license, allowing it to offer derivatives across the European Economic Area. Kraken also recently secured an Electronic Money Institution (EMI) license from the UK's Financial Conduct Authority (FCA) as part of its strategy to expand its presence in the United Kingdom.