Kraken Acquires NinjaTrader, Boosts Revenue 19% Year-on-Year

Kraken, a prominent cryptocurrency exchange, has finalized its acquisition of NinjaTrader, a futures trading platform. This strategic move allows Kraken to offer traditional derivatives trading to its US customers, aligning with its broader goal of becoming a comprehensive trading platform. The acquisition is part of Kraken's expansion strategy, which includes plans to enter the UK, continental Europe, and Australian markets. Additionally, Kraken is preparing for an initial public offering (IPO) in early 2026 and is exploring a debt package worth between $200 million and $1 billion to facilitate this transaction.

The completion of the NinjaTrader acquisition coincides with Kraken's first-quarter financial results, which showed a 19% year-on-year increase in revenue to $471.7 million. This growth reflects Kraken's successful efforts to diversify its offerings and attract a broader range of customers. The acquisition of NinjaTrader, a registered Futures Commission Merchant with the Commodity Futures Trading Commission, is expected to further enhance Kraken's market position by providing access to traditional financial markets.

NinjaTrader, which recently rolled out trading for over 11,000 stocks and exchange-traded funds to certain US clients, will benefit from Kraken's extensive user base and technological infrastructure. This partnership is expected to drive growth for both companies, as they leverage each other's strengths to expand their market reach and customer base. The deal is significant as it represents the largest acquisition between a crypto and traditional finance firm, underscoring the growing convergence between these two sectors.

Despite the positive developments, Kraken's first-quarter revenue marked a 6.8% fall from the previous quarter. The exchange attributed this decline to a "slowdown in overall market trading activity" triggered by threats of implementing sweeping tariffs, which led to an 18% fall in the crypto market cap over the quarter. However, Kraken's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 1% from the previous quarter to $187.4 million, indicating strong operational efficiency. The number of funded accounts on Kraken's platform also increased by 10% quarter-on-quarter to 3.9 million, signaling deeper client engagement.

Kraken's strategic acquisitions and financial performance highlight its commitment to growth and innovation in the rapidly evolving financial landscape. By expanding its offerings to include traditional derivatives trading and preparing for an IPO, Kraken is positioning itself as a leading player in the global financial markets. The company's focus on operational efficiency and client engagement further underscores its dedication to delivering value to its customers and shareholders.