Kraken Finalizes NinjaTrader Acquisition, Records Q1 Revenue of $471 Million
Crypto Powerhouse Kraken Shows Resilience Amid Market Slump
Kickstarting 2025, Kraken, a leading crypto exchange with a staggering $20 billion valuation, managed to hold its ground even as the broader cryptocurrency market encountered a temporary soft patch.
In their Q1 2025 financial update, Kraken announced a revenue of $471.7 million - a 10% increase compared to the same period last year, although slightly down from the $506.3 million earned in Q4 2024. Adjusted EBITDA was $187.4 million, marking a 1% increase from the previous quarter, demonstrating Kraken's commitment to running an efficient operation.
One remarkable figure: Kraken's total exchange trading volume hit an impressive $208.7 billion, marking a 29% year-over-year jump, despite slightly dipping compared to Q4's $230.9 billion.
Kraken by the Numbers: Q1 2025
It's not just about volume - Kraken's user base expanded, with 3.9 million funded accounts now on the platform, compared to 3.1 million a year ago.
In the update, Kraken expressed pride in building on the momentum of 2024, successfully navigating market shifts to outperform even during a period of growth.
Kraken's Biggest Move: The Acquisition of NinjaTrader
Kraken concluded the acquisition of NinjaTrader, a major move that unites traditional finance (TradFi) and crypto trading under one roof. This significant deal, which sets Kraken up to offer both traditional derivatives and crypto assets in a unified experience, represents the largest acquisition of its kind.
What's Next for Crypto Traders?
Soon, crypto traders will have access to traditional derivatives on Kraken’s platform, while NinjaTrader users will gain entry to the crypto markets via their own tools.
Kraken's Vision: Becoming a Multi-Asset Trading Platform
As part of its larger goal, Kraken aims to transform into a multi-asset trading platform catering to both retail and institutional investors.
Tools for Everyday Users
In Q1, Kraken introduced several new tools for everyday users:
- Kraken Pay: Launched in Q1, it allows users to send instant payments across 300+ crypto and fiat currencies, positioning Kraken as more than just a trading venue.
- A Redesigned Kraken App: Focused on helping users manage wealth across various asset classes.
- Staking Services: Available in 37 U.S. states and 2 territories, with a focus on regulatory compliance.
Institutional and Advanced Traders aren't Left Behind
For more advanced traders and institutions, Kraken didn't hold back:
- FIX API for Futures: Enhanced tools for large partners and institutions, driving a 250% month-over-month spike in derivatives volume.
- Kraken Pro Upgrades: Improvements like asset-based cost basis, average entry prices, unrealised P&L, multi-chart views, and a customizable mobile UI based on client feedback.
- OTC Tools inside Kraken Pro: Institutional-grade execution tools are now conveniently built into the Pro app.
Kraken Rushes to Keep Ahead of the Competition
In order to maintain transparency, Kraken completed another Proof of Reserves audit as of March 31, 2025. Users can verify their holdings independently through a cryptographically verifiable Merkle tree. Kraken plans to move towards a quarterly audit schedule.
"Kraken has been a pioneer in performing regular Proof of Reserves, well before it became industry standard, and we will continue to conduct these audits on a quarterly basis," the exchange stated.
While revenue slightly dipped quarter-over-quarter, and average revenue per user (ARPU) fell to $314 from $378, the broader picture is clear: Kraken is growing and executing, even during a cooling market.
With the NinjaTrader acquisition complete and more institutional tools being rolled out, Kraken is betting on a multi-asset future. The exchange isn't just aiming to survive the bear cycles; it's planning to thrive on the other side.
Also Read: Tether Reports $1 Billion Profit and $120 Billion in U.S. Treasury for Q1 2025
- Despite a slight dip in revenue from the previous quarter, Kraken's adjusted EBITDA increased by 1%, showcasing their continued commitment to running an efficient financial operation.
- In their quest to become a multi-asset trading platform, Kraken acquired NinjaTrader, combining traditional finance and crypto trading under one roof, marking the largest acquisition of its kind.
- To cater to everyday users, Kraken introduced new tools such as Kraken Pay, a redesigned app, and staking services, while advanced traders and institutions were provided with enhanced API for futures, Kraken Pro upgrades, and OTC tools inside the Pro app.
- Kraken's emphasis on transparency is evident through regular Proof of Reserves audits, with plans to move towards a quarterly audit schedule and the ability for users to independently verify their holdings.
