KRAKacquisition Corp., a special purpose acquisition company linked to Kraken's parent firm, has made its intentions clear: it is actively searching for a reverse merger target in the crypto space, setting a valuation ceiling of $10 billion. However, director Ravi Tanuku admitted the eventual target is "more likely around $2 billion."
The SPAC listed on the Nasdaq on January 28, 2026, under the ticker KRAQU, raising $345 million in its IPO. Backers include entities affiliated with Payward Inc. (Kraken's parent), early-stage crypto venture firm Tribe Capital, and Natural Capital. Under SPAC rules, KRAKacquisition has two years to complete a deal. The firm is now vetting crypto-native companies, zeroing in on three segments: stablecoins, decentralized finance (DeFi), and crypto payments.
SPAC Opens a Faster Route to Public Markets for Mid-Sized Crypto Firms
Tanuku noted that many crypto firms are too small for a traditional IPO — investment banks rarely bother with offerings under $1 billion. A SPAC merger offers an alternative: the target company reverse-merges into KRAKacquisition's Nasdaq shell, bypassing lengthy underwriting and due diligence. This model appeals to mid-sized crypto firms valued between a few hundred million and $2 billion.
Interestingly, Kraken itself is also weighing a direct IPO this year. The exchange raised $800 million in its last funding round and is valued at around $20 billion by market consensus. If Kraken pursues its own IPO alongside the SPAC acquisition, it would create a dual-track public listing strategy.
Only a handful of crypto companies have gone public via traditional IPO — Coinbase is the most prominent. Most mid-sized crypto firms struggle with regulatory costs and compliance. KRAKacquisition fills a gap by providing a ready-made shell for crypto-native enterprises looking to go public without the red tape.