Key Insights
- Kraken confidentially submitted a draft S-1 registration statement with the SEC on November 19 for a proposed initial public offering.
- The Wyoming-based exchange secured $200 million from Citadel Securities on November 18, valuing the company at $20 billion.
- Kraken raised $800 million across two financing rounds in recent months.
Kraken announced on November 19 that it confidentially filed for an initial public offering in the United States.
This move would advance the crypto exchange toward public markets one day after securing a strategic investment from a major financial institution.
Payward, Inc., operating as Kraken, submitted a draft registration statement on Form S-1 to the Securities and Exchange Commission for its proposed initial public offering of common stock.
Yet, the crypto exchange did not disclose the number of shares to be offered or the price range for the proposed offering.
The crypto IPO was expected to occur after the SEC completed its review process, subject to market and other conditions. The announcement by Kraken complied with Rule 135 under the Securities Act of 1933.
Citadel Investment Precedes Kraken Filing
As per crypto news reports, Kraken secured $200 million in a strategic investment from Citadel Securities on November 18. The investment valued the crypto exchange at $20 billion.
Citadel Securities, the nearly 25-year-old market maker, planned to work with Kraken on risk management and market structure analysis, according to a press release.
Jim Esposito, president of Citadel Securities, stated:
“We’re excited to support Kraken’s continued growth as it helps shape the next chapter of digital innovation in markets.”
The timing placed the confidential IPO filing one day after the strategic investment close. This suggested coordinated planning between the capital raise and public market preparation.
The Citadel round followed an earlier financing closed by Kraken in September.
The crypto exchange raised $600 million at a $15 billion valuation from a group of Wall Street and Silicon Valley investors, including Jane Street, DRW, HSG (formerly Sequoia Capital China), Oppenheimer, Tribe Capital, and the family office of Arjun Sethi, co-CEO of Kraken.
A spokesperson publicly confirmed the $600 million round for the first time alongside the Citadel announcement.
Bloomberg reported in September that the crypto exchange considered a new raise at a $20 billion valuation from a strategic investor.
The two rounds raised $800 million in new capital for Kraken within approximately 2 months. The valuation increased from $15 billion in September to $20 billion in November, representing a 33% increase in approximately eight weeks.
Public Market Timeline For Kraken Filing Review Process
The confidential filing initiated the SEC review process required before Kraken could complete its initial public offering.
The crypto exchange did not provide a specific timeline for the offering. It announced that it remained subject to regulatory review and favorable market conditions.
Confidential submissions allow companies to engage with SEC staff privately before publicly disclosing financial information and business details.
The exchange could withdraw or modify the filing based on feedback received during the review process.
Kraken’s IPO filing came as crypto exchanges pursued public listings and strategic partnerships with traditional financial institutions.
The crypto exchange operates one of the largest digital asset trading platforms globally, serving retail and institutional clients.
The company’s path to public markets reflected broader institutionalization trends in crypto infrastructure.