Kraken’s Market Resurgence: Secondary Activity and Growth Signals in 2025
Portfolio company Kraken, a leading cryptocurrency exchange, is showing strong signs of recovery in the secondary market. With rising trading volumes, revenue growth, and increasing investor interest, the company is positioning itself for long-term expansion. This report explores Kraken’s latest market performance, regulatory challenges, and financial trends based on recent data.
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1. Kraken’s Growth Trajectory
Founded in 2011 by Jesse Powell, Kraken has grown into one of the most trusted crypto exchanges globally. The company has emphasized security, regulatory compliance, and customer service, setting itself apart from competitors like Binance and Coinbase. Headquartered in San Francisco, CA, its notable investors include Meros Equity Global Management, RT Capital Partners and IPO CLUB.
Key Milestones:
• 2013: Launched as a cryptocurrency exchange platform.
• 2017: Became the first exchange to offer Bitcoin trading.
• 2018: Surpassed 4 million global users.
• 2020-2022: Introduced security features and expanded to 7 million clients.
• 2023-2024: Rolled out advanced tracking tools, Kraken Wallet, and institutional services.
Competitive Positioning
Kraken maintains a strong reputation for security, having never suffered a significant hack—a key differentiator from rivals like Binance and Bitfinex. The company follows stringent regulatory guidelines in the U.S. and Europe, providing futures trading, spot trading, and margin trading (up to 5x leverage).
2. Financial Performance and Market Valuation
Revenue Growth
According to PM Insight, Kraken’s revenue has experienced volatility in recent years, with a major rebound in 2024:
• 2021: $1.97 billion (459% growth)
• 2022: $954 million (-52%)
• 2023: $657.89 million (-31%)
• 2024: $1.5 billion (+128%)
Kraken currently holds $42.8 billion in customer assets, with an average customer balance exceeding $2,000.
Valuation and Secondary Market Performance
• Implied Valuation (Feb 17, 2025): $6.5 billion (+13.6% since Series B in 2019).
• Latest Secondary Price: $25 per share (+16% in the last 30 days).
• Return on Investment (ROI):
• 180-day ROI: +83.4%
• 90-day ROI: +58.9%
• 30-day ROI: +14.5%
3. Latest Events
In January 2025, Kraken announced it generated revenue of $1.5 billion (up 128% year-over-year) and $380 million in adjusted EBITDA for the 2024 fiscal year.
In December 2024, Kraken announced it was chosen as a partner for the distribution of funds to former clients of FTX.
As of of October 2024, Kraken claims to be generating over $1 billion in net revenue.
In October 2024, Kraken named Arjun Sethi, a longtime Silicon Valley executive, as Co-CEO as part of a company restructuring.
In October 2024, Bloomberg reported Kraken plans to launch its own blockchain early next year.
In September 2024, Kraken announced it acquired BCM, one of the Netherlands’ oldest registered crypto broker firms, to support its expansion across Europe.
In August 2024, Bloomberg reported that Kraken must face SEC lawsuit over operating an unregistered securities exchange.
In August 2024, AXIOS reported a judge in the U.S. Court's Northern District of California ruled the November 2023 SEC lawsuit against Kraken may proceed.
Per pymnts.com's June 2024 article, "Kraken is expected to have revenue of between $1 billion and $2 billion this year amid the crypto market’s rally."
4. Future Outlook and Investment Considerations
Market Potential
• User Base: Over 10 million users across 190+ countries.
• Trading Volume: Exceeds $207 billion quarterly.
• Kraken’s increasing activity in the secondary market suggests growing investor optimism and potential for further price appreciation.
What’s Next?
• Expansion of institutional services and trading tools.
• Potential IPO in the coming years as market conditions improve.
• Continued focus on regulatory compliance and security innovations.
5. IPO CLUB Series 11 - Kraken is open for investment
Kraken current valuation is $6.5 Billion. For more information talk to us
What is IPO CLUB
We are a club of Investors with a barbell strategy: very early and late-stage investments. We leverage our experience to select investments in the world’s most promising companies.
Disclaimer
Private companies carry inherent risks and may not be suitable for all investors. The information provided in this article is for informational purposes only and should not be construed as investment advice. Always conduct thorough research and seek professional financial guidance before making investment decisions.
