Kraken Q2 Revenue Hits $411.6M Up 18% Amid Profit Decline and Market Uncertainties

Kraken, one of the world’s largest cryptocurrency exchanges, reported a revenue of $411.6 million for the second quarter of 2025, marking an 18% year-over-year increase [1]. The growth came despite a 7% decline in adjusted EBITDA, which fell to $79.7 million, attributed to a slowdown in trading momentum and macroeconomic uncertainties, including concerns over U.S. tariff policy [2]. Total exchange volume rose 19% annually to $186.8 billion but saw an 11% drop compared to the first quarter of the same year [1]. User-held assets, however, climbed 47% over the past 12 months to $43.2 billion, indicating sustained user engagement despite reduced quarterly trading activity.

Kraken’s expansion into new markets and product offerings continued during the quarter. In April, the firm launched commission-free stock trading in the U.S., and in May, it expanded its crypto derivatives offerings in European markets [1]. The company also plans to introduce zero-commission stock and ETF trading in the U.K., Europe, and Australia by the end of 2025, as part of its broader strategy to diversify its revenue streams and attract new user segments. Kraken is also pushing tokenized equities, signaling a long-term shift toward broader financial services.

The firm’s dominance in stable-fiat spot trading has grown significantly, with its market share jumping from 43% to 68% in just one quarter [1]. This suggests that Kraken is successfully capturing a larger portion of the market, particularly in high-volume, low-volatility trading segments. However, the overall crypto market remains under pressure, with assets like Dogecoin (DOGE) recently dipping below key support levels, reflecting broader concerns over market sustainability and investor sentiment [3].

Looking ahead, Kraken is reportedly preparing for a major funding round, aiming to raise $500 million at a $15 billion valuation in anticipation of an initial public offering scheduled for early 2026 [1]. The move highlights the company’s confidence in its long-term growth potential and its readiness to enter the public markets.

Kraken’s Q2 performance illustrates a mix of resilience and vulnerability. While the firm continues to grow in revenue and user engagement, its narrowing profit margins raise questions about its ability to maintain profitability amid shifting market conditions. As the company moves toward a diversified business model and prepares for an IPO, investors will closely monitor how it navigates the broader macroeconomic environment and executes its expansion plans.

Source:

[1] Coindoo - Kraken Reports Revenue Growth but Faces Profit Dip Amid Market Headwinds (https://coindoo.com/kraken-reports-revenue-growth-but-faces-profit-dip-amid-market-headwinds/)

[2] Mitrade - Kraken's Q2 profits dwindled from the corresponding... (https://www.mitrade.com/au/insights/news/live-news/article-3-1000462-20250731)

[3] Mitrade - Dogecoin (DOGE) Dips Again – Healthy Correction or Sign... (https://www.mitrade.com/au/insights/news/live-news/article-3-993297-20250729)