The raise follows $2.65B in acquisitions. A Deutsche Börse deal implied a $13.3B valuation, creating a gap that could pressure the IPO price.
Payward, the parent company of crypto exchange Kraken, is raising new capital at a $20 billion valuation, according to a CoinDesk report citing two people familiar with the matter. The fundraise signals that the firm is accelerating its push toward a public listing. A recent secondary transaction by Deutsche Börse priced the company closer to $13.3 billion. The gap between those two numbers is the central risk for anyone tracking the Kraken IPO story.
The new round matches the valuation that has anchored a series of recent acquisitions. Last week, Kraken agreed to acquire stablecoin-focused payments firm Reap Technologies for $600 million. That followed the $550 million purchase of derivatives exchange Bitnomial a month earlier. Both deals were priced off the $20 billion mark. The largest transaction in the sequence remains the $1.5 billion acquisition of NinjaTrader, the U.S. retail futures platform, completed in 2025.
Payward’s investor list has continued to fill out. Last November’s $800 million raise brought in Jane Street, DRW Venture Capital, and Tribe Capital. Citadel Securities later added a separate $200 million strategic investment at the same $20 billion valuation. The capital is being deployed to build a diversified, recurring revenue base that public-market investors prefer, expanding from spot trading into derivatives, payments, custody, and tokenization infrastructure.
At Consensus Miami last week, Payward co-CEO Arjun Sethi said the company is “80% ready” to go public. Payward confidentially filed a draft S-1 with the SEC in November. It paused listing plans in March after market conditions turned unfavorable. Sources told CoinDesk the firm remains interested in an IPO once conditions improve.
The timeline is now tied to two variables: the success of the current capital raise and the broader appetite for crypto-exposed equities. A completed round at $20 billion would validate the valuation and give the company a stronger hand when it reactivates the S-1 process.
The three acquisitions total $2.65 billion. Each deal targets a different revenue stream. Reap Technologies brings stablecoin payment rails, a business that generates fee income from transaction volume rather than trading spreads. Bitnomial adds a regulated U.S. derivatives exchange, giving Kraken exposure to the futures and options market that has become the dominant volume driver in crypto. NinjaTrader extends the platform into traditional retail futures, a segment with a large, sticky user base and recurring subscription revenue.
The shift matters for valuation. Publicly traded crypto exchanges have historically traded at discounts to fintech peers because of their dependence on spot trading volumes, which swing wildly with Bitcoin and Ethereum price cycles. A broader revenue mix, particularly one that includes subscription and payment-processing income, can support a higher multiple. The $20 billion target implies that Payward’s backers believe the market will reward that diversification.
In April, German exchange operator Deutsche Börse bought a 1.5% fully diluted stake in Payward for $200 million. That secondary transaction implied a valuation closer to $13.3 billion. The gap between the primary raise at $20 billion and the secondary deal at $13.3 billion is not a rounding error. It reflects the difficulty of pricing crypto infrastructure companies during periods of uneven market sentiment.
Secondary transactions often price at a discount to primary rounds because they involve existing shares, not new capital that funds growth. The discount can be meaningful when the company is not yet public and liquidity is limited. The Deutsche Börse deal suggests that some sophisticated buyers, even those willing to take a strategic stake, are not prepared to pay the headline number.
The crypto market has been rangebound, with Bitcoin struggling to hold levels that would signal a broad risk-on rotation. That environment makes it harder for a crypto exchange to command a premium valuation. If public-market investors apply a similar discount to the one implied by the Deutsche Börse transaction, the IPO could price well below $20 billion. The risk is not that Payward cannot go public; it is that the public debut lands at a valuation that disappoints the private investors who bought in at the higher mark.
Risk to watch: The gap between the $20 billion primary valuation and the $13.3 billion secondary transaction signals that public-market investors may demand a discount.
AlphaScala’s proprietary Alpha Score for Spotify (SPOT) sits at 39/100, a Mixed reading that mirrors the uneven sentiment across growth assets, including crypto infrastructure firms seeking public listings.
A sustained rally in crypto prices would be the most direct catalyst. Higher spot and derivatives volumes would boost revenue across Kraken’s trading business, making the $20 billion valuation easier to justify. Successful integration of the acquired companies, particularly if Reap Technologies and Bitnomial begin contributing meaningful revenue before the roadshow, would also strengthen the narrative. A completed capital raise at the target valuation, with participation from tier-one investors, would send a signal that the private market still believes in the number.
A further deterioration in crypto market conditions would be the most obvious threat. If Bitcoin and Ethereum break below key support levels, trading volumes could contract sharply, and the appetite for a crypto exchange IPO would evaporate. Regulatory setbacks, such as a delayed S-1 review or new enforcement actions against the sector, would add execution risk. A failed or down-round capital raise would force Payward to either delay the IPO further or accept a lower valuation, which could trigger markdowns for late-stage private investors.
The next concrete marker is the closing of the current funding round. If Payward secures the capital at $20 billion, the IPO timeline moves from aspirational to operational. If the round prices lower, or if it struggles to close, the $13.3 billion secondary mark becomes the more relevant reference point for public-market pricing.
Drafted by the AlphaScala research model and grounded in primary market data – live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.