In a significant move within the financial sector, crypto exchange Kraken has successfully completed its acquisition of the futures trading platform NinjaTrader, marking a pivotal expansion of its offerings. The latest report reveals that Kraken’s revenue for the first quarter has surged by 19% year-on-year, bringing in an impressive $471.7 million.
This strategic acquisition not only allows Kraken to cater to traditional derivatives trading for its US customers but also positions it as a frontrunner in the evolving financial landscape. As detailed in a recent press release, Kraken aims to become the go-to platform for diverse trading needs, aligning with its mission to diversify its service portfolio.
NinjaTrader, recognized as a registered Futures Commission Merchant, has begun to expand its services, recently offering trading for over 11,000 stocks and exchange-traded funds to selected US clients. This move is anticipated to significantly enhance Kraken’s reputation and accessibility in the traditional finance sector.
The deal, touted as the largest ever between a cryptocurrency platform and a traditional finance entity, will facilitate NinjaTrader’s expansion into international markets, including the UK, continental Europe, and Australia. As Kraken gears up for its anticipated initial public offering (IPO) in early 2026, the company is exploring a substantial debt package valued between $200 million and $1 billion to support this transaction.
Despite the positive growth in revenue, Kraken reported a quarter-over-quarter decline in trading volume by 9.6%, falling to $208.7 billion. Additionally, the value of custodial assets dropped by 18% to $34.9 billion. The exchange attributes this downturn to a broader slowdown in market activity exacerbated by geopolitical factors, specifically citing Donald Trump‘s rhetoric concerning potential tariffs, which contributed to an 18% drop in the overall crypto market cap.
Nevertheless, Kraken’s adjusted EBITDA, which reflects its operational profitability, showed resilience, increasing by 1% to $187.4 million despite the turbulent market environment. The number of funded accounts on the platform also rose, indicating a 10% increase quarter-on-quarter, culminating in a total of 3.9 million accounts and showcasing a trend towards deeper client engagement.
In light of the recent developments, Kraken has been actively restructuring its workforce, particularly after appointing Arjun Sethi as co-CEO last October. The company has undergone significant layoffs, affecting around 400 employees, as part of its strategic adjustment to ensure long-term sustainability and growth.
Despite operational challenges, Kraken remains committed to expanding its service offerings, such as the recent roll-out of ETF and stock access for US crypto traders. As the firm navigates these waters, industry analysts are keenly observing how Kraken positions itself against competitors while adapting to the shifting market dynamics.
As Kraken continues to innovate, its acquisition of NinjaTrader could prove to be a game changer in bridging the gap between cryptocurrency and traditional finance, setting a precedent for future partnerships and expansions in this burgeoning sector.
