Prospective Kraken IPO Just Became More Attractive

Kraken, one of the largest US-based crypto exchanges, has acquired the token management platform Magna.

The move marks another step in its aggressive expansion as it prepares for an initial public offering (IPO).

Kraken Acquires Magna Amid US IPO Push

The terms of the acquisition, which closed Friday, were not disclosed. Still, this marks Kraken’s sixth deal in the past year. Others include:

• $1.5 billion purchase of US futures platform NinjaTrader in March
• Acquisitions of tokenized stock provider Backed
• Acquisition of derivatives infrastructure firm Small Exchange.

Magna specializes in helping crypto companies manage the distribution of their tokens to investors. As crypto startups raise funds, they often promise venture capitalists a tranche of tokens, similar to traditional equity arrangements.

Managing these allocations grows increasingly complex as projects scale, especially once tokens begin trading publicly.

“This would just add to being able to reach out and start supporting [token] issuers early on in their lifecycle, rather than later at the time they’re thinking about liquidity within their token,” read an excerpt in the announcement, citing Kraken co-CEO Arjun Sethi.

The acquisition reflects Kraken’s strategy of expanding its product offerings ahead of a prospective public listing.

Kraken reportedly aims to raise $500 million at a $15 billion valuation in its IPO.

As BeInCrypto previously reported, the move aligns with broader trends in the US crypto sector. Exchanges are increasingly diversifying beyond crypto trading into derivatives, tokenized equities, and other financial products.

Kraken’s push follows Circle’s successful IPO and Coinbase’s expansion into prediction markets, demonstrating growing investor appetite for crypto firms entering public markets.

Citing Ark Invest, BeInCrypto highlighted that regulatory shifts under the Trump administration created a more favorable environment for late-stage crypto IPOs.

“Among the possibilities are…the re-opening of the initial public offering (IPO) window for late-stage digital asset companies like Circle and Kraken…,” Ark Invest said in a newsletter.

Acquisitions like Magna go beyond strengthening Kraken’s infrastructure. They also enhance its appeal to institutional clients.

By integrating token management tools directly into its platform, Kraken positions itself as a one-stop hub for both emerging crypto projects and traditional investors seeking structured exposure to digital assets.

With the Magna acquisition, Kraken signals a clear intent:

• Building a comprehensive product suite
• Scaling institutional offerings, and
• Establishing a firm foothold in both crypto and TradFi markets

These steps could make its eventual IPO one of the most closely watched in the sector.

However, even amidst the traction, it is impossible to question the sustainability of its aggressive acquisition spree (six deals in roughly a year).

The strategy risks “IPO window dressing,” prioritizing perceived scale over organic growth. With deal terms largely undisclosed, it is unclear if integrations deliver real value or simply inflate Kraken’s narrative.

Heavy reliance on acquisitions could mask challenges in user retention and revenue momentum, leaving the exchange vulnerable to post-IPO scrutiny and regulatory shifts. This could jeopardize its $15–20 billion valuation targets.