Kraken Q3 Revenue +114% to $648M; Volume +106% as IPO Looms
Kraken reported Q3 revenue of $648 million, up 114% year-on-year, with trading volume rising 106% to $561.9 billion. Adjusted EBITDA reached $178.6 million, lifting profit margins to 27.6%, while assets under custody climbed 89% to $59.3 billion and funded users hit 5.2 million. Growth was driven by strategic acquisitions, including Breakout, the launch of its US derivatives arm offering CME-listed crypto futures, and a tokenized securities platform for European investors. In late September, Kraken secured $500 million in private funding at a $15 billion valuation. The exchange is targeting an IPO in 2026 and plans to file its SEC registration by the end of 2025. Traders should monitor Kraken’s margin trends and IPO timeline as indicators of institutional confidence and potential market liquidity shifts.
Bullish
Record revenue growth, surging trading volume and improved profit margins highlight strong demand for digital assets on Kraken. The $500M funding round at a $15B valuation and plans to file an SEC registration by end-2025 reinforce institutional confidence. In the short term, upbeat results may boost trading activity and liquidity across the platform. Longer term, a successful 2026 IPO could attract regulated capital and enhance market transparency, further supporting bullish momentum.