Kraken has no immediate plans for an IPO, even though earlier reports suggested the crypto exchange was looking to go public by 2026.
Kraken CEO Arjun Sethi isn’t concerned about missing out on the IPO frenzy, emphasizing that the company remains financially strong and won’t “race to the door as quickly as possible.”
“We have enough capital on our balance sheet today as a private company,” Sethi said during an interview with Yahoo Finance.
Kraken’s financials remain strong
Reports that Kraken was preparing for a public listing have been circulating since mid-2024 and gained more traction this year, and that’s not surprising given how the regulatory climate in the United States has improved under pro-crypto President Donald Trump.
A number of Kraken’s direct competitors, like Circle, Bullish, and Gemini, have made headlines with their public listings, as Wall Street’s response has been largely enthusiastic.
For instance, Circle’s June IPO raised over 1.1 billion dollars and sent its stock surging by more than 160% in the days after going public, briefly pushing its market cap above $23 billion.
Meanwhile, Gemini made a splash with its debut earlier this year, joining a growing list of crypto-native firms tapping into public markets.
Yet, Kraken’s hesitation to go public finds strength in the business fundamentals that continue to support its long-term strategy.
Last month, Kraken published its third-quarter earnings report, where it posted a record-breaking quarter with total revenue reaching 648 million dollars, a 47% increase over the previous quarter.
Its adjusted EBITDA came in at $178.6 million, marking a 124% jump, while the exchange saw its total transaction volume climb to $561.9 billion, even as broader crypto markets remained volatile.
Much of this growth stems from consistent expansion efforts and new products launched globally over the past year.
For instance, earlier this month, Kraken rolled out regulated crypto-collateral perpetual futures trading for European clients, allowing them to use Bitcoin, Ethereum, and select stablecoins as margin.
Offered under full EU regulatory compliance, the new service has opened up more capital-efficient trading options for both institutions and active traders.
Kraken has also emerged as a leading player in the tokenized stocks market with its xStocks launch in June, offering access to 60 US equities for international clients through a partnership with Backed.
At the same time, the company has made key acquisitions to deepen its presence in traditional financial infrastructure.
Most recently, Kraken acquired Small Exchange for $100 million, which granted it a Designated Contract Market license from the CFTC, a move that fits into Kraken’s long-term plan to build a fully regulated US-based derivatives venue.
Given these developments, it’s not surprising that Kraken feels no urgency to fast-track its Wall Street debut, especially as it continues to secure substantial private funding.
In September, the company closed a $500 million funding round without a lead investor, placing its valuation at $15 billion.
Participating members included investment firms, VCs, and CEO Arjun Sethi himself through Tribe Capital and his personal capacity.
Leading crypto firms skip IPO hype
Kraken now joins a select group of major crypto firms that are not rushing to list on public markets despite favorable conditions.
Blockchain payments company Ripple, for instance, has given a similar explanation when asked about its IPO plans.
When asked, company president Monica Long made it clear that Ripple has “no plan, no timeline” for a listing, as the company sees little value in going public at this stage and prefers to focus on scaling its products and infrastructure while remaining privately funded.
Tether, the stablecoin issuer behind the largest dollar-pegged token USDT, has also shown no interest in pursuing a public listing.
Instead, it continues to focus on strengthening its market dominance and expanding into new financial infrastructure plays, including recent investments in payment platforms, data security ventures, and the artificial intelligence sector.
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