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 open to companies in DeFi and payments. “We’re looking at things related to crypto, but also stablecoins, DeFi, and all kinds of areas in payments,” Tanuku said.

The firm is casting a wide net across multiple crypto-related sectors. Tanuku described the SPAC as a strategic investment tool for Kraken.

Kraken Moves Toward Its Own IPO Amid SPAC Search

The SPAC search comes as Kraken also prepares to go public through its own IPO. In November, the exchange confidentially filed a registration statement with the SEC.

This filing followed an $800 million fundraising round completed earlier. That round valued Kraken at $20 billion.

Kraken’s decision to lend its brand to KRAKacquisition reflects genuine commitment to the venture. The exchange expects to hold a reasonably meaningful stake in any company the SPAC acquires.

This would create a direct economic link between Kraken and the acquired firm. Any acquisition would also strengthen Kraken’s broader market presence.

Billionaire investor Stanley Druckenmiller has also weighed in on the stablecoin opportunity. “I assume our whole payments systems will be stablecoins in 10 or 15 years,” he said in an interview with Morgan Stanley.

His comments reinforce the growing institutional confidence in stablecoin infrastructure. This sentiment aligns closely with KRAKacquisition’s sector focus.

With a two-year clock running, KRAKacquisition must act within its timeframe. The firm continues to evaluate a range of crypto-native companies across multiple sectors.

Tanuku noted that Wall Street interest in these areas remains strong. The SPAC’s flexible target range gives it room to pursue the right deal.