Kraken’s SPAC KRAKacquisition Targets Stablecoin and DeFi Firms Worth Up to $10 Billion

TLDR: KRAKacquisition raised $345M in January, launching a two-year hunt for a crypto acquisition target. The SPAC is evaluating firms valued between $2 billion and $10 billion across crypto sectors. Target sectors include stablecoins, DeFi, asset tokenization, and payments-related crypto firms. Kraken filed a confidential SEC registration statement as it pursues its own IPO this year. KRAKacquisition Corp., a SPAC tied to crypto exchange Kraken, is searching for an acquisition target. The firm is evaluating companies with valuations ranging from $2 billion to $10 billion. KRAKacquisition raised approximately $345 million through its IPO in January, starting a two-year search window. The SPAC is targeting crypto-native firms in stablecoins, DeFi, tokenization, and payments. This search runs parallel to Kraken’s own plans for a public offering later this year. KRAKacquisition Targets Small- and Mid-Cap Crypto Firms Director Ravi Tanuku confirmed to Decrypt that KRAKacquisition is evaluating companies valued up to $10 billion. However, he noted that the final valuation could land closer to $2 billion. The range shows the firm’s openness to companies of varying sizes. Ultimately, KRAKacquisition is focused on helping smaller firms access public markets. Taking smaller companies public has become increasingly difficult, according to Tanuku. “It’s not easy to take a company in that smaller market cap range public anymore,” he told Decrypt. The SPAC structure offers these firms an alternative route to public markets. This makes KRAKacquisition a practical vehicle for smaller companies exploring Wall Street. Wall Street’s appetite for stablecoin and tokenization companies grew considerably last year. Tanuku pointed to this trend as a strong market signal. “The market is clearly paying up for those and starting to realize there’s big changes afoot,” he said. He added that this was a good signal for the firm to keep in mind. Beyond stablecoins, KRAKacquisition is also ope...