In a remarkable financial performance, Kraken has reported a substantial increase in revenue, hitting $2.2 billion for the year 2025, which represents a 33% growth compared to the previous year. This impressive figure positions Kraken to potentially execute one of the most significant initial public offerings (IPOs) in the cryptocurrency industry within this decade.
A breakdown of the revenue reveals that trading activities accounted for 47% of the total, while the remaining earnings stemmed from asset-based operations and various services. Co-CEO Arjun Sethi emphasized the balanced nature of this revenue distribution during discussions with investors, highlighting the company”s strategic focus.
The robust financial results underscore Kraken”s ongoing preparations for its IPO, following a confidential filing with the SEC in November. Although the company has refrained from disclosing specific timelines or valuation targets, it has garnered attention with a recent funding round valuing it at approximately $20 billion. This figure, however, may not fully reflect the valuations that public investors will consider.
Deepening the growth narrative, Kraken reported a 26% rise in adjusted EBITDA, reaching $530.6 million. The exchange”s transaction volume surged to $2 trillion, marking a 34% increase from the previous year. Additionally, assets under management rose by 11% to $48.2 billion, and the number of funded accounts jumped by 50% to 5.7 million users. These metrics paint a compelling picture of an exchange that is not merely riding the crypto wave but actively expanding its user base and engagement.
In pursuit of further growth, Kraken has engaged in a series of acquisitions, encompassing companies like NinjaTrader, Breakout, Small Exchange, and Capitalise.ai over the past year. Each acquisition targets different segments of the trading ecosystem, with NinjaTrader enhancing futures trading capabilities and Small Exchange expanding into derivatives. Capitalise.ai introduces AI-driven trading tools, reflecting Kraken”s ambition to build a comprehensive and scalable infrastructure.
One of Kraken”s most ambitious initiatives is its foray into tokenized stocks, which has already generated $5 billion in trading value within weeks of its launch, attracting over 37,000 users. This innovative offering enables users to trade blockchain representations of shares from companies like Apple and Tesla, effectively placing Kraken in competition with traditional brokerage firms. While this venture carries regulatory risks due to the absence of clear guidelines surrounding hybrid products, early adoption figures indicate a strong demand.
In addition to its domestic efforts, Kraken has made strategic moves in Europe, acquiring a broker based in Cyprus to obtain a MiFID II license. This regulatory approval empowers Kraken to offer crypto perpetual contracts to European clients, broadening its service offerings. Perpetual contracts, which do not have expiration dates, are a significant component of crypto trading, previously dominated by Asian exchanges. This European expansion is crucial for diversifying Kraken”s revenue streams, especially given the uncertain regulatory landscape in the U.S.
With $800 million raised in its latest funding round, Kraken is channeling these resources into both expansion and technological advancements. While specific costs for each acquisition remain undisclosed, industry estimates suggest total expenditures in the hundreds of millions.
As Kraken prepares for its IPO, it has enlisted Goldman Sachs and Morgan Stanley as lead underwriters, with legal teams working on compliance with regulatory requirements. The current market environment for crypto IPOs appears more favorable than it was two years ago, with Bitcoin maintaining stability above $40,000 and growing institutional adoption.
In contrast to competitors like Coinbase, which has faced earnings volatility tied to cryptocurrency price fluctuations, Kraken”s diversified revenue model—including trading, staking, derivatives, and tokenized stocks—may present a more appealing option for investors seeking steady growth. Furthermore, Kraken”s extensive international operations stand in contrast to Coinbase”s focus on the U.S. market, potentially providing a buffer against regulatory crackdowns in specific jurisdictions.
While Sethi has not provided details on the timing of the IPO, industry analysts anticipate an announcement within the next six months. To proceed, Kraken needs to update its financials and complete necessary regulatory reviews. Given the volatile nature of the crypto market, the company is likely eager to act while conditions remain favorable.
The $20 billion valuation positions Kraken as one of the most valuable entities in the cryptocurrency space. However, whether public investors will match this valuation remains contingent on growth expectations and market sentiment at the time of the IPO launch. Notably, Bitcoin“s rally past $100,000 in late 2024 has significantly contributed to Kraken”s revenue increase, with trading volumes across major exchanges rising sharply.
The launch of Kraken”s tokenized stock offering coincides with a broader acceptance of blockchain-based securities by traditional finance, evidenced by initiatives from firms like BlackRock and JPMorgan. However, the regulatory environment remains uncertain, particularly in the U.S., where the SEC has yet to provide formal guidance on tokenized stocks.
In summary, Kraken”s impressive revenue growth and strategic acquisitions position it favorably for a successful IPO, as it navigates a rapidly evolving and complex regulatory landscape.
