Kraken seeks $200-300 million funding that would value the crypto exchange at $20 billion

Crypto exchange Kraken is trying to raise more money that could make the company worth around $20 billion as it gets ready to go public.

The funding isn’t done yet and depends on how the markets look, but it would bring in $200 million to $300 million from a big investor, according to someone who knows about the talks but didn’t want their name used.

This comes after Kraken just raised $500 million and got valued at $15 billion. The jump shows that private investors want to put more money into big crypto companies.

The company goes by Payward Inc. officially and started back in 2011 out of Cheyenne, Wyoming. Before this year, Kraken had only raised about $27 million total.

The extra money would help Kraken fight better against Coinbase Global Inc., which is already public, and other big exchanges around the world. Kraken just started letting people trade tokenized versions of stocks and exchange-traded funds. The company keeps adding new stuff as it gets ready for its initial public offering.

The cryptocurrency industry’s major players are stepping up fundraising activities as US regulatory attitudes soften and mainstream adoption increases. Leading digital asset companies are now accessing both private and public markets to expand their offerings, obtain necessary licenses, and prepare for possible public listings.

Kraken picked Morgan Stanley and Goldman Sachs Group Inc. to handle its upcoming IPO, which should happen next year, according to people who know about it.

Back in March, Bloomberg News said Kraken wants to go public, maybe in the first quarter of next year.

Other big crypto companies are also trying to raise huge amounts

Tether Holdings SA, the company behind the world’s biggest stablecoin, is looking to raise between $15 billion and $20 billion from investors in what could become one of the largest private funding deals ever.

The El Salvador-based firm wants to sell roughly 3% of its shares through a private placement, according to people familiar with the discussions. However, one source warned that these figures represent best-case scenarios and the final amounts might be much smaller.

The talks are still in early phases, and terms could shift as negotiations continue. Those involved were not permitted to discuss the matter publicly.

If successful at the higher end, the deal would put Tether’s worth at around $500 billion. That would place it alongside tech giants like OpenAI and Elon Musk’s SpaceX among the world’s most valuable private companies.

The achievement would be remarkable for a crypto business that operates with limited oversight, especially as competition grows and declining US interest rates could hurt its profits. Circle Internet Group Inc., Tether’s main competitor in stablecoins, was valued at about $30 billion as of Tuesday.

The funding would come from issuing new shares rather than current owners selling their holdings. Cantor Fitzgerald is serving as the main advisor for the deal.

Tether CEO Paolo Ardoino confirmed on Wednesday on X that the company is considering raising money from major investors to expand operations across stablecoins, artificial intelligence, commodity trading, energy, communications, and media.

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