What Did KRAKacquisition Bring to Market?
KRAKacquisition Corp, a special purpose acquisition company backed by an affiliate of crypto exchange Kraken, has completed an upsized $345 million initial public offering after fully exercising its overallotment option. The SPAC began trading on the Nasdaq Global Market on Jan. 28 under the ticker KRAQU, according to a company announcement.
The deal exceeded earlier expectations. KRAKacquisition had initially planned to raise $250 million but increased the size of the offering as investor demand allowed the underwriter to sell additional units. In total, the IPO consisted of 34.5 million units priced at $10 each, including 4.5 million units issued through the full exercise of the overallotment option. Gross proceeds reached $345 million before fees and expenses.
Each unit includes one Class A ordinary share and one-quarter of a redeemable warrant. Once the units separate, the shares are expected to trade under the symbol KRAQ, while the warrants will trade as KRAQW. Each full warrant is exercisable at $11.50 per share.
Investor Takeaway
Why Is a Crypto-Linked SPAC Coming Now?
KRAKacquisition’s debut comes at a time when crypto-related firms are reassessing access to public capital markets. After a period in which listings slowed and valuations compressed, several companies tied to digital assets have begun revisiting IPOs, SPAC mergers, and other public-market routes.
The timing reflects a mix of caution and opportunity. Regulatory conditions in the United States remain unsettled for parts of the crypto industry, but capital markets have shown signs of reopening for issuers with clear structures and recognizable sponsors. SPACs, while no longer at peak popularity, continue to offer a pathway for firms that want flexibility in timing and target selection.
By sponsoring a blank-check company rather than listing an operating business directly, Kraken and its partners are keeping optionality open. The structure allows the sponsors to assess potential targets over time while holding capital in trust, rather than committing to a single transaction upfront.
How Is the SPAC Structured?
KRAKacquisition was formed to pursue a future merger or acquisition, but the company has said it has not identified a specific target and has not entered substantive discussions with any potential counterparties. This is typical for newly listed SPACs, which usually begin target searches only after completing their IPO.
Santander US Capital Markets served as the sole underwriter for the offering. The registration statement became effective on Jan. 27, clearing the way for trading to begin the following day. As with most SPACs, the IPO proceeds are expected to be held in trust until a transaction is completed or the company is liquidated.
The sponsor group includes an affiliate of Kraken alongside Natural Capital and Tribe Capital. That mix brings together crypto-native and venture-style investors, suggesting the SPAC may look beyond traditional fintech and into areas where digital assets, infrastructure, or adjacent technologies intersect with regulated markets.
Investor Takeaway
What Does This Say About Crypto and Public Markets?
The successful upsizing of the IPO suggests that public-market investors are still willing to back crypto-adjacent strategies, provided the structure offers downside protection and flexibility. SPACs appeal to that preference by allowing investors to redeem shares if they disagree with a proposed deal.
At the same time, the absence of a named target highlights the uncertainty that still surrounds valuations and regulatory clarity in the sector. Many crypto firms remain cautious about committing to public listings while rules around trading, custody, and disclosures continue to develop.
For Kraken, sponsoring a SPAC creates exposure to future deal opportunities without forcing its core exchange business into the public spotlight. That distinction matters at a time when exchanges face ongoing oversight and legal questions in multiple jurisdictions.
What Comes Next for KRAKacquisition?
The next phase will be defined by target selection. Like most SPACs, KRAKacquisition will have a limited window to complete a merger or acquisition before returning capital to investors. During that period, market conditions and regulatory signals will likely influence both the type of target pursued and the valuation terms.
In the near term, trading in KRAQU units will reflect expectations around the sponsor group’s ability to source a deal that appeals to public investors. As the units separate into shares and warrants, pricing may also diverge based on views about redemption risk and the likelihood of a transaction.
