Kraken’s Biggest Move Yet: NinjaTrader Deal Completed as Revenue Soars

TLDR

Kraken has completed its acquisition of futures trading platform NinjaTrader Q1 revenue increased 19% year-on-year to $471.7 million The acquisition gives US customers access to traditional derivatives markets Trading volume fell 9.6% quarter-over-quarter to $208.7 billion Kraken is preparing for an IPO in early 2026

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Kraken, one of the world’s largest cryptocurrency exchanges, has completed its acquisition of futures trading platform NinjaTrader while reporting a 19% year-on-year increase in first-quarter revenue to $471.7 million. The company announced the finalization of the deal on May 1, marking what it called the largest ever merger between a crypto and traditional finance firm.

The NinjaTrader acquisition is a key step in Kraken’s strategy to expand its offerings beyond cryptocurrency. NinjaTrader is a registered Futures Commission Merchant with the Commodity Futures Trading Commission, giving Kraken’s US customers access to traditional derivatives markets.

Last month, NinjaTrader rolled out trading capabilities for over 11,000 stocks and exchange-traded funds to certain US clients. This aligns with Kraken’s stated goal of becoming the go-to platform for all types of trading.

Global Expansion Plans

The deal will also allow NinjaTrader to expand its services to the UK, continental Europe, and Australian markets. Kraken plans to operate NinjaTrader as a standalone platform within its suite of trading and payments applications.

Kraken said NinjaTrader capabilities will be integrated into Kraken Pro and Kraken Desktop soon. This integration is part of Kraken’s vision to build an institutional-grade trading platform where any asset can be traded at any time.

The company plans to introduce additional asset classes to both platforms in the future. These include stocks, prediction markets, and options, further broadening its service offerings.

Source: Kraken

Despite reporting strong year-on-year growth, Kraken’s first-quarter revenue of $471.7 million represented a 6.8% decrease from the fourth quarter of 2024. The exchange also reported that trading volume fell 9.6% quarter-over-quarter to $208.7 billion.

The value of assets under Kraken’s custody dropped 18% to $34.9 billion over the same period. The company attributed these declines to a “slowdown in overall market trading activity” linked to US President Donald Trump’s threats of implementing sweeping tariffs.

Market Conditions and Company Performance

These factors contributed to an 18% fall in the overall crypto market cap during the quarter. Kraken was one of several crypto platforms that saw record or near-record trading activity in Q4 2024, driven by market volatility following Trump’s November election win.

Despite what Kraken described as a “softening market,” the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 1% from the previous quarter to $187.4 million.

The firm also reported that the number of funded accounts on its platform increased 10% quarter-on-quarter to 3.9 million. Kraken said this growth signals “deeper client engagement” despite challenging market conditions.

Kraken is preparing for an initial public offering in early 2026. To facilitate this transaction, the company is exploring a debt package worth between $200 million and $1 billion.

According to Reuters, Kraken has undergone a workforce restructuring since Arjun Sethi was appointed as co-CEO last October. The report indicates that Sethi has laid off around 400 employees during his tenure.

For the transaction, PJT Partners served as financial advisor to Kraken, while Jones Day and Lowenstein Sandler served as legal advisors. On the NinjaTrader side, Jefferies acted as financial advisor, with Choate, Hall & Stewart LLP and Katten Muchin Rosenman LLP serving as legal advisors.

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