The crypto exchange plans to invest $55M in ETH and $20M in AAVE tokens for a 15% equity stake in Aave Group.
Kraken is negotiating to acquire a 15% stake in Aave at a $385 million valuation. The deal involves investing 35,000 ETH, worth approximately $55 million, alongside $20 million in AAVE tokens, totaling around $71 million for the equity stake in Aave Group, the protocol’s parent company.
Aave has been recovering from the KelpDAO exploit in April, which led to billions in deposit withdrawals despite no direct compromise of its smart contracts. The valuation reflects a strategic push by Kraken’s parent, Payward, to diversify ahead of a potential IPO. Standard Chartered recently initiated coverage of AAVE with a long-term price target of $4,000, up from its current $81 level.
The move aligns with broader market trends as crypto majors trade lower, with BTC at $59.5k and SOL leading declines of 1-5% across the sector.