Crypto exchange Kraken explores up to US$1 billion debt package

[NEW YORK] Crypto exchange Kraken is exploring raising as much as US$1 billion in debt ahead of a potential initial public offering, according to sources with knowledge of the matter.

The company is working with Goldman Sachs and JPMorgan Chase on the effort, which is at a preliminary stage, said the sources, who asked not to be identified discussing confidential information. The two banks have begun conversations with additional banks and direct lenders, the sources said.

Any debt raised is set to help fuel the company’s growth and is not for operational needs, and as little as US$200 million could be raised, one of the sources said.

Kraken is also considering raising equity in addition to the debt package, said one of the sources. No final decisions have been made, and terms, including the size of the capital raise, may still change.

Representatives for Kraken, Goldman and JPMorgan declined to comment.

San Francisco-based Kraken, founded in 2011, is led by co-chief executive officers Arjun Sethi and David Ripley. Known officially as Payward, Kraken is readying plans to go public as soon as the first quarter of next year, amid a friendlier US regulatory climate under US President Donald Trump, Bloomberg News has reported. Last week, the company agreed to buy retail futures trading platform NinjaTrader for US$1.5 billion, and has previously held discussions about raising pre-IPO funding.

In January, the company disclosed 2024 revenue of US$1.5 billion, up 128 per cent from a year earlier, and US$380 million in adjusted earnings before interest, taxes, depreciation and amortisation. Kraken works with more than 10 million users in over 190 countries, and processes quarterly trading volume in excess of US$207 billion, its website shows. BLOOMBERG