The San Francisco-based crypto exchange Kraken is in talk with two of the largest investment banks Goldman Sachs and JP Morgan to raise over $1 billion in debt ahead of the firm’s initial public offering (IPO), says a Bloomberg article.
Kraken, which has been in operation since 2011, is one of the oldest crypto exchanges and it is considered a direct rival to the largest U.S.-based exchange Coinbase.
As per an anonymous source cited in the Bloomberg article, Kraken is at the preliminary stage of talks with Goldman Sachs and JP Morgan Chase to raise funds for the exchange’s expansion. These two banks have also begun conversations with additional banks and direct lenders regarding the deal.
The people familiar with the matter said that any debt raised through the deal will be used for Kraken’s expansion and it’s not for any operational needs. The exchange is also looking to raise equity alongside debt while no such plans or amount are revealed.
Kraken is planning to go public by Q1 2026 as it gets a clearer pathway after the announcement of SEC’s withdrawal from the lawsuit against the company earlier this month. Now the exchange is hurrying up for the IPO while the U.S. President Donald Trump crafts crypto-friendly policies within the country.
Earlier this year in January, Kraken disclosed its financial report of 2024 and stated that its yearly revenue has increased by 128% to $1.5 billion and has an adjusted earning of nearly $380 million. Recently, the exchange also announced plans to acquire futures trading platform NinjaTrader for $1.5 billion.
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