TradingKey - Crypto Exchange Kraken's Valuation Plunges to $13.3 Billion; Why Is It Still Pushing for an IPO?

On April 14, Eastern Time, CNBC reported that Arjun Sethi, co-CEO of crypto exchange Kraken, reaffirmed that the company has confidentially filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). This move has left the market puzzled as to why the company has repeatedly adjusted its IPO plans.

In November 2025, Kraken first submitted a confidential draft S-1 to the SEC, aiming to raise $800 million at a valuation of $20 billion. In March this year, as the broader crypto market declined and newly listed crypto stocks like Gemini and BitGo performed poorly, rumors circulated that Kraken had paused its IPO plans. Yesterday (April 14), Kraken sold a 1.5% stake to Deutsche Boerse for $200 million. This transaction directly anchored its valuation at $13.3 billion, a sharp drop of $6.7 billion or nearly 34% from last year.

Why have Kraken's IPO plans been so inconsistent, and why is it willing to go public at a discount now? This may be a shrewd move by the exchange, executing a sophisticated "psychological war" and "defensive retreat" amidst extreme market volatility and a complex regulatory environment.

Since the outbreak of conflict in the Middle East in late February, global liquidity has become extremely sensitive. Forcing an IPO in March, when the Volatility Index (VIX) was high, would have been suicidal. However, by April 15, with positive news regarding the resumption of U.S.-Iran negotiations and Bitcoin hitting $76,000, market risk appetite recovered. Kraken's "indecisiveness" is essentially a precise navigation of geopolitical windows.

In March this year, Kraken achieved a historic breakthrough by becoming the first crypto firm to gain direct access to a Federal Reserve Master Account, meaning its settlement system is now officially linked to the traditional banking system. This "regulatory tailwind" needs time to be digested by public market investors and priced into the valuation. The previous delays were likely a wait for the legal procedures surrounding this major development to be fully finalized, paving the way for the listing.

The crypto environment in 2026 remains generally fragile; an excessive valuation could risk the stock falling below its IPO price, severely damaging the confidence of early investors and employees. Kraken's decision to restart its IPO at a "relatively safe" level of $13.3 billion is intended to leave upside potential for the public market and ensure a strong performance on the first day of trading.

Furthermore, Kraken may have been waiting for a powerful endorsement like that of Deutsche Boerse. Bringing in Deutsche Boerse was not purely for capital, but rather to provide a "floor" for its valuation. With the backing of a top-tier traditional exchange, this valuation is no longer seen by Nasdaq as "crypto-community hype," but as the fair value of "financial infrastructure."

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