“To provide a secure, reliable, and user-friendly platform for cryptocurrency trading and investment. The company aims to accelerate the global adoption of cryptocurrency, enabling financial freedom and inclusion for individuals and organizations worldwide.”

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Founded in 2011 by Jesse Powell, Kraken is a cryptocurrency exchange that offers spot and futures trading for Bitcoin, Ethereum, and over 40 other digital assets. Headquartered in San Francisco, Kraken is one of the world's largest and most successful bitcoin exchanges, serving over 7 million clients globally. The platform facilitates the exchange of cryptocurrencies with national currencies like USD, EUR, CAD, and JPY, and offers advanced trading tools and APIs for professional traders and developers.

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Business Model

Kraken operates as a cryptocurrency exchange platform, generating revenue through trading fees on transactions made by its users. The platform caters to both individual and institutional clients, offering services such as over-the-counter (OTC) trading, futures trading, and margin trading. Kraken prioritizes security, transparency, and customer support, providing 24/7 live chat support and a range of tools to enhance the trading experience.

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Targeted Impact

Kraken aims to foster trust and confidence in the cryptocurrency market, driving mainstream adoption and financial freedom for users worldwide.

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Who Will benefit?

Individuals and organizations looking to trade and invest in cryptocurrencies will benefit from Kraken's secure and user-friendly platform.

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What Comes Next?

Kraken plans to continue expanding its product offerings and enhancing its platform to support the evolving needs of the cryptocurrency market.

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Kraken Growth Timeline

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Kraken and Competition

Kraken competes with other major cryptocurrency exchanges such as Coinbase, Binance, and Bitfinex. Its emphasis on security, transparency, and customer support differentiates it from competitors. It distinguishes itself from rivals with its significant emphasis on security, legal compliance, and customer service. Kraken follows stringent compliance guidelines in several jurisdictions, including the US and Europe, in contrast to Binance and Bitfinex, which have come under governmental investigation. Another significant differentiator is security; Kraken has never been the target of a significant hack, but several of its rivals have. Along with staking services that rival Binance Earn and Coinbase's staking offerings, the platform provides futures trading, spot trading, and margin trading (up to 5x leverage).

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Key Partners

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Prominent News

Kraken Sees 39% Surge in Regulatory Requests in 2024, Led by FBI and SEC, February 20, 2025. - Kraken saw a 39% rise in regulatory and enforcement data requests in 2024, with U.S. agencies leading the trend, according to its latest transparency report. The FBI was the most active U.S. agency, issuing 614 of the 1,951 requests from the country. Click here to read more.‍

Kraken to Discontinue Tether Trading in Europe, February 2, 2025 - Kraken has decided to discontinue support for Tether (USDT) and other stablecoins that fail to meet European Union regulations. This decision aligns with the region's changing regulatory framework and will affect users within the European Economic Area (EEA). Click here to read more.‍

Kraken revenue surges 128% to $1.5 billion in 2024 amid strategic overhaul, January 31, 2025 -  In 2024, Kraken's revenue surged to $1.5 billion, marking a 128% increase from the previous year, according to its latest financial report. The exchange also revealed that it holds $42.8 billion in customer assets, with an average revenue exceeding $2,000 per customer. Click here to read more.

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Revenue

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Return on Investment (ROI)

ROI computed as of February 17, 2025.

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Funding Round in USD

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Series B Valuation

<span class="date">2019-07-01</span>
<span class="value">$5.21B</span>

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Implied Valuation

<span class="date">2025-02-17</span>
<span class="value">$5.85B<span>

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Change Since Last Round

<span class="date">2019-07-01 → 2025-02-17</span>

<span class="value green">+12.24%</span>

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Quarterly Bid:Ask Volume Ratio

PM Insights highlights the quarterly bid:ask volume ratio where there were at least three institutionally-sized broker contributions within that period.

Kraken received a high volume of bids and offers, totaling approximately $1 billion in Q2 2021 and $918 million in Q2 2022. Between January 1, 2025, and February 17, 2025, Kraken had a total bid and ask volume of $90 million, with bid and ask volumes being nearly evenly distributed.

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90-day Activity

Activity on each date comprises the total unique broker contributions (bids, asks, and trades) within a 90-day rolling window ending on that date.

The plot below displays 90-day activity over the last 365 days from February 17, 2025. Kraken's activity began increasing in late November 2024 and peaked at 68 contributions as of February 17, 2025.

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90-day Volatility of Composite Price

The volatility of the composite price is calculated based on the movement over the previous 90 days.

The plot below shows that Kraken experienced very high volatility at the beginning of February 2024. However, it declined significantly and has remained stable since then. As of February 17, 2025, Kraken's volatility was 18%.

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