Cryptocurrency exchange Kraken has secured fresh capital from major investors Apollo Global Management and Oppenheimer, according to a recent Reuters report citing sources familiar with the matter. Following a September funding round, the exchange is now valued at $15 billion, with ongoing talks aimed at boosting its valuation to $20 billion ahead of a planned initial public offering (IPO) in the United States.
In a separate development, Kraken reported record-breaking Q3 revenue that more than doubled year-over-year to $648 million, representing a 114% growth. The company also posted adjusted pre-tax earnings of $178.6 million, a significant turnaround from a slightly negative result in 2024. This growth was fueled by a 106% increase in trading volume, reaching $561.9 billion, alongside a 46% rise in funded accounts to 5.2 million and an 89% surge in assets under custody to $59.3 billion.
Strategic moves contributed to this performance, including the acquisition of The Small Exchange for $100 million, which expanded Kraken's U.S. derivatives operations, and the earlier purchase of futures trading platform NinjaTrader for $1.5 billion. Additionally, the platform began supporting CME futures contracts, offering more leverage options and scaling its presence in the derivatives market. Kraken's focus on professional and institutional customers has been a key driver, with the company preparing for its IPO next year amid a competitive landscape that includes rivals like Coinbase.
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