Kraken-affiliated SPAC targets $250M IPO

Cayman Islands-incorporated KRAKacquisition, a Kraken-linked SPAC, has filed for an ambitious $250 million Nasdaq IPO under the ticker KRAQU. The proposed IPO consists of 25 million units, with each unit expected to have an IPO price of $10, although no specific business combination target has been selected.

The KRAKacquisition SPAC also disclosed that each unit consists of one share of Class A ordinary stock and one quarter of one redeemable warrant, which is exercisable at $11.50 per share. The Menlo Park, California-based SPAC plans to target businesses developing digital asset payment networks, blockchain infrastructure, tokenization platforms, and compliance solutions, among other crypto-related services. 

Meanwhile, KRAKacquisition will be headed by Natural Capital’s co-founder and general partner, Ravi Tanaku, who will be the SPAC’s CEO and Director. He will be joined by Kraken’s leader of strategic initiatives, Sahil Gupta, as the SPAC’s CFO. Santander will be the sole bookrunner on the deal, which is also backed by Natural Capital and Tribe Capital.

KRAKacquisition Corp aims to effect mergers

KRAKacquisition Corp was established for the purpose of effecting share purchases and exchanges, asset acquisitions, reorganizations, or mergers with one or more businesses. However, the company disclosed that no one has engaged in any discussions on its behalf, whether directly or indirectly. 

Meanwhile, plans for KRAKacquisition’s IPO overlap with that of Kraken, and will strategically serve as a vehicle for Kraken’s broader ecosystem expansion. The crypto exchange quietly filed its S-1 registration with the U.S. SEC last November at a valuation of $20 billion, given its goal of becoming a comprehensive, multi-asset financial platform. The company has since formalized the acquisition of tokenized asset issuer Backed Finance and four other companies, including U.S. futures trading platform NinjaTrader, which it acquired for $1.5 billion in 2025.

On the other hand, KRAKacquisition’s extensive disclosure about the SPAC’s structure includes detailed risk factors specific to crypto investments and blank-check companies. The disclosures address regulatory uncertainty, the speculative nature of identifying appropriate mergers, and market volatility. 

The U.S. SEC also emphasizes the need for enhanced disclosure requirements for companies with significant exposure to digital assets. That level of transparency represents an important transformation in how crypto-related entities approach public market disclosures.

SPAC’s offering includes several investor protection mechanisms

The proposed KRAKaquisition offering utilizes a traditional SPAC financial structure with several investor protection mechanisms. The $250 million in proceeds will initially be held in a trust account that will earn interest until the company spots a suitable margin target.

Meanwhile, this structure also provides downside protection for investors if the SPAC does not complete a business combination within the designated 18- to 24-month period. Several factors that could influence the success of the SPAC’s offering include management expertise, market conditions, strategic positioning, and regulatory clarity.

A report published by IPO-focused investment services firm Renaissance Capital on January 12 also revealed that the SPAC intends to concentrate its efforts on digital asset companies. However, it may pursue an initial business combination in any sector, industry, or business. The SPAC’s mission is to accelerate the next phase of growth for developer teams building the bridge between TradFi and DeFi. 

KRAKacquisition further believes that the most attractive targets share specific characteristics such as innovative technology with clear use cases and organic growth potential. The SPAC also believes that its targeted business combinations must have exceptional leadership teams with a track record of execution or the ability to operate effectively within evolving policy frameworks, among other key characteristics. 

Meanwhile, unifying issuance, trading, and settlement under one framework ensures the infrastructure for tokenized assets remains transparent, reliable, and globally accessible, according to Arjun Sethi, the Co-founder of Kraken. The exchange raised $800 million last month in a funding round led by Citadel Securities.

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