Blank Check Firm Linked to Crypto Exchange Kraken Raises $345 Million in Upsized IPO

KRAKacquisition Corp, a special purpose acquisition company (SPAC) linked to crypto exchange Kraken, raised $345 million in the completion of its upsized IPO this week. 

The firm—which trades as KRAQU on the Nasdaq—sold 34,500,000 shares at $10 each, with an additional 4,500,000 shares purchased as part of an overallotment. It initially intended to sell 25 million shares when its registration statement was filed earlier this month. 

The "blank check" firm is intended to merge or enter into a business combination with an existing entity, but said it has not yet had any “substantive discussions” with a potential target. 

“While we may pursue an initial business combination in any business or industry or sector, we intend to concentrate our efforts on companies in the digital asset ecosystem,” the firm wrote in its prospectus filed with the SEC on Thursday. “Our mission is to accelerate the next phase of growth for the teams building the bridge between DeFi and TradFi.” 

To that end, KRAKacquisition Corp. aims to focus on companies developing infrastructure, with an eye towards payments networks, tokenization platforms, compliance solutions, or other essential services. 

“While we retain flexibility to pursue opportunities in any sector, we believe the most transformative opportunities lie in the convergence of DeFi and TradFi,” it wrote. 

KRAKacquisition Corp. is sponsored by NCTK Sponsor LLC, a Delaware LLC formed between Kraken, Tribe Capital, and Natural Capital solely to invest in the blank check firm. According to its recent SEC filing, the firm intends to gain assistance from Kraken’s “deep ecosystem access, enhanced diligence, proven operating experience, and regulatory expertise.”

“We believe Kraken's participation as a partner in our sponsor provides multiple distinct advantages in identifying and executing a successful business combination,” the filing reads. “Although Kraken will not be contractually obligated to do so, we expect that Kraken's participation as a partner in our sponsor will incentivize it to assist us, without additional compensation.” 

Since it began trading, shares have not budged much from the IPO price, recently changing hands around $10.15—a gain of 1.5%. 

A representative for the firm did not immediately respond to Decrypt’s request for comment on how the move may ultimately impact Kraken’s own planned IPO. The exchange filed to go public in November, fresh off an $800 million fundraise that valued the firm at $20 billion.