Particle.news
Download on the App Store

Octopus Energy Spins Out Kraken in $8.65 Billion Deal After $1 Billion Raise

The split positions Kraken as a neutral utility platform with a potential listing to follow after separation targeted by mid-2026.

Overview

  • New and existing investors bought about $1 billion of equity in Kraken, leaving Octopus with a 13.7% stake in the spun-out company.
  • Investors led by Octopus Capital are injecting an additional $320 million into Octopus Energy, with most proceeds reported to support the parent’s growth.
  • D1 Capital Partners led the round alongside Fidelity International, Ontario Teachers’ Pension Plan and Durable Capital Partners, while Origin Energy committed roughly $140 million and keeps a 22.7% interest.
  • Kraken’s AI-powered platform is contracted to serve more than 70 million customer accounts and reported contracted annual revenue above $500 million as of September.
  • Octopus and Kraken say independence removes perceived conflicts with would-be clients and sets up optionality for a potential IPO in London or New York.