Kraken, one of the largest US-based cryptocurrency exchanges, has acquired token management platform Magna.
The move marks another step in the company’s aggressive expansion as it prepares for an initial public offering (IPO).
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Kraken acquires Magna amid US IPO push
Terms of the acquisition, which closed Friday, were not disclosed. Still, this is the Kraken’s sixth contract in the past year. Others include:
Acquisition of US futures platform NinjaTrader in March for $1.5 billion Acquisition of tokenized equity provider Acquisition of backed derivatives infrastructure company Small Exchange.
Magna specializes in helping cryptocurrency companies manage the distribution of tokens to investors. When crypto startups raise capital, they often commit to venture capitalists for a tranche of tokens, similar to traditional equity agreements.
Managing these allocations becomes increasingly complex as the project scales, especially once the tokens begin public trading.
“This simply allows us to reach out to (token) issuers and start supporting them earlier in the lifecycle, rather than later on when they are thinking about liquidity within their tokens,” said an excerpt from the announcement quoting Kraken co-CEO Arjun Sethi.
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The acquisition reflects Kraken’s strategy to expand its product offerings ahead of its planned listing.
Kraken is reportedly aiming to raise $500 million in an IPO at a valuation of $15 billion.
As BeInCrypto previously reported, this move is in line with broader trends in the US crypto sector. Exchanges are increasingly diversifying beyond cryptocurrency trading into derivatives, tokenized stocks, and other financial products.
Kraken’s push follows Circle’s successful IPO and Coinbase’s expansion into prediction markets, demonstrating a growing appetite among investors for crypto companies to enter the public markets.
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Citing Ark Invest, BeInCrypto highlighted that regulatory changes under the Trump administration have created a more favorable environment for late-stage crypto IPOs.
“Among the possibilities…the reopening of the initial public offering (IPO) window for late-stage digital asset companies like Circle and Kraken…,” Ark Investments said in a newsletter.
Acquisitions like Magna don’t just strengthen Kraken’s infrastructure. It also increases its appeal to institutional customers.
By integrating token management tools directly into the platform, Kraken positions itself as a one-stop hub for both emerging crypto projects and traditional investors seeking structured exposure to digital assets.
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With the acquisition of Magna, Kraken signals clear intent.
Build a comprehensive product suite Expand institutional services and establish a solid foothold in both the crypto and TradFi markets
These steps could make the company’s eventual IPO one of the most closely watched in the space.
But even amidst traction, it’s impossible to question the sustainability of the company’s aggressive acquisition spree (roughly six deals a year).
This strategy carries the risk of “IPO accounting fraud” and prioritizes scale over internal growth. The terms of the deal have been largely undisclosed, so it’s unclear whether the merger will add real value or just add to the Kraken story.
A heavy reliance on acquisitions can mask challenges in user retention and revenue momentum, and leave exchanges vulnerable to post-IPO oversight and regulatory changes. This could jeopardize the company’s valuation target of $15 billion to $20 billion.
