Kraken Acquires NinjaTrader, Q1 Revenue Up 19%
Kraken Completes NinjaTrader Acquisition, Q1 Revenue Soars
Cryptocurrency exchange Kraken announced the successful completion of its acquisition of futures trading platform NinjaTrader. This acquisition, touted as the largest ever between a crypto and traditional finance firm, significantly expands Kraken's reach into traditional markets. Concurrently, Kraken reported a 19% year-over-year increase in first-quarter revenue, reaching $471.7 million.
According to Kraken's May 1 report, the NinjaTrader acquisition provides US customers with access to traditional derivatives markets. This aligns with Kraken's broader strategy to become a comprehensive trading platform, offering a wide range of financial instruments.
NinjaTrader Integration and Market Expansion
NinjaTrader, a registered Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC), recently expanded its offerings to include trading for over 11,000 stocks and ETFs for select US clients. The acquisition allows NinjaTrader to expand into the UK, continental Europe, and Australian markets.
Q1 Financial Performance and Market Slowdown
While Kraken's Q1 revenue showed significant growth, it also experienced a 6.8% decrease from Q4 2024, reaching $471.7 million. Trading volume fell 9.6% quarter-over-quarter to $208.7 billion, and custodied assets decreased 18% to $34.9 billion. Kraken attributed this slowdown to decreased overall market trading activity, partly influenced by President Trump's proposed tariffs, which triggered an 18% drop in the crypto market cap during the quarter.
Despite the market slowdown, Kraken's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 1% to $187.4 million. The number of funded accounts also increased 10% quarter-over-quarter to 3.9 million.
Kraken's Future Plans
Kraken is preparing for an initial public offering (IPO) in early 2026 and is currently exploring a debt package of $200 million to $1 billion to support this transition. The company recently underwent a restructuring, resulting in layoffs, as reported by Reuters.
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