Crypto Exchange Kraken Explores Up to $1 Billion Debt Package

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(Bloomberg) -- Crypto exchange Kraken is exploring raising as much as $1 billion in debt ahead of a potential initial public offering, according to people with knowledge of the matter.

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

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

Kraken is also considering raising equity in addition to the debt package, said one of the people. 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 Inc., Kraken is readying plans to go public as soon as the first quarter of next year, amid a friendlier US regulatory climate under President Donald Trump, Bloomberg News has reported. Last week, the company agreed to buy retail futures trading platform NinjaTrader for $1.5 billion, and has previously held discussions about raising pre-IPO funding.

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