KRAK Acquisition Corp., a SPAC linked to crypto exchange Kraken, has started looking for digital asset companies valued between $2 billion and $10 billion. The Nasdaq-listed vehicle raised roughly $345 million in its January IPO and is now reviewing possible merger candidates across the crypto sector, while Kraken itself is preparing for a public listing later this year.
Target review began soon after the Nasdaq IPO
The company moved into evaluation mode shortly after completing its public offering. As with other SPACs, the structure is designed to merge with a private company and take that business into public markets. Director and CEO Ravi Tanuku said the team is currently examining several potential acquisition targets.
Those candidates span multiple parts of the digital asset industry. Tanuku said KRAK is focused on businesses valued in the $2 billion to $10 billion range, though some names under review may sit closer to the $2 billion end. That points to a search aimed at established mid-sized crypto firms rather than smaller early-stage startups.
Stablecoins, tokenization, DeFi, and payments are in focus
KRAK Acquisition is concentrating on a defined set of blockchain segments: stablecoins, asset tokenization, DeFi, and payment infrastructure. Tanuku said Wall Street interest in tokenization and stablecoins rose sharply last year. Traditional financial markets, he added, are paying closer attention to companies operating in these areas.
The search is not limited to one narrow niche. Firms building digital payment tools and blockchain platforms are also being considered, which gives the SPAC a wider field across crypto-native businesses instead of a single-theme strategy.
Two-year deal window as Kraken expands its capital base
Kraken has also been building out its financial position. The source material says the exchange raised $800 million in 2024, putting its valuation near $20 billion. Against that backdrop, KRAK Acquisition is exploring merger opportunities across a broader section of the crypto market.
Under the usual SPAC structure, KRAK has two years to complete a deal. Tanuku said some mid-sized crypto companies can face obstacles in pursuing a traditional IPO, making a SPAC merger an alternative route to public markets. For now, the company remains in review mode across crypto assets, stablecoins, DeFi, and payment networks while tracking interest from public market investors.