Kraken Reports 19% Revenue Surge in Q1 2025 Amid Trump's Volatility

Kraken, a prominent cryptocurrency exchange, reported a significant revenue increase of 19% year-over-year for the first quarter of 2025, totaling $472 million. This surge was primarily driven by heightened market volatility during the early days of President Trump’s second term. The company attributed this revenue jump to increased trading activity amidst volatile conditions, despite noting a sequential decline of 7% from the fourth quarter of 2024.

Adjusted EBITDA also rose by 17% year-over-year to $187.4 million, while overall trading volume on the platform surged by 29% over the same period. The company highlighted its resilience amid seasonality, noting that the fourth quarter of 2024 saw unusually high trading activity due to the U.S. election season, which tapered off in the following quarter. Kraken reported a 250% increase in monthly trading volume and a 26% year-over-year rise in funded accounts during Q1. Assets on the platform continued to grow, although their value dipped slightly due to broader crypto market conditions.

Kraken continues to diversify its offerings, recently acquiring NinjaTrader to enable derivatives trading in the U.S. and expanding into equities and ETFs through a brokerage deal with Alpaca. In the UK, Kraken launched derivatives trading, marking a key move in its second-largest market. The exchange also introduced Kraken Pay, a new consumer-focused financial app, alongside an institutional-grade API to enhance professional access. Kraken Head of Derivatives Alexia Theodorou emphasized that while spot and derivatives volumes are currently similar, derivatives hold significantly greater growth potential.

Kraken is preparing for an initial public offering (IPO) as early as the first quarter of 2026, taking advantage of what appears to be a more favorable regulatory climate under President Donald Trump. The company’s IPO plans are not yet final and could change in the coming months. As reported, the SEC has agreed in principle to dismiss its lawsuit against Kraken, according to a statement from the company. The case will be dropped with prejudice, meaning it cannot be refiled. Kraken will not admit to any wrongdoing, pay penalties, or change its business operations. The SEC sued Kraken in November 2023, alleging it operated as an unregistered securities exchange, broker, clearing agency, and dealer. The regulator also accused the company of commingling customer and corporate funds. Kraken contested the charges, leading a federal judge to rule the case had enough merit to proceed to trial.

Kraken’s Co-CEO Arjun Sethi reaffirmed the company’s plans to go public, even amid cooling IPO sentiment. Other exchanges like Bullish and Gemini have similarly signaled interest in entering public markets, although many remain cautious in light of unpredictable policy signals from the Trump administration. Kraken continues to gain market share and deepen client engagement despite macroeconomic uncertainty.