TLDR
- Kraken bought Breakout, a prop trading platform offering up to $200,000 in trader capital
- Traders keep up to 90% of profits after passing skill evaluations
- Deal follows Kraken’s $1.5B NinjaTrader purchase as exchange expands infrastructure
- Breakout supports 50+ crypto pairs with Bitcoin and Ethereum leverage trading
- Acquisition terms undisclosed; Breakout raised $4.5M in 2024 funding
Cryptocurrency exchange Kraken has completed its acquisition of Breakout, a proprietary trading platform based in Tampa, Florida. The deal represents Kraken’s latest move to expand trading infrastructure and services for advanced cryptocurrency traders.
Breakout provides qualified traders access to company capital of up to $200,000. The platform requires traders to pass rigorous evaluation tests that assess risk management capabilities and trading strategy discipline before receiving funding.
The startup launched in 2023 and currently supports more than 50 cryptocurrency trading pairs. Traders who successfully manage the allocated capital can retain up to 90% of their trading profits.
Kraken co-CEO Arjun Sethi explained the acquisition strategy focuses on merit-based capital allocation. The exchange wants to reward proven trading performance rather than financial background or industry connections.
Proprietary Trading Platform Features
Breakout offers leveraged trading with 5x leverage available on Bitcoin and Ethereum contracts. The platform maintains strict performance standards, requiring traders to undergo retesting if they exceed designated drawdown thresholds.
The evaluation process tests multiple trading competencies including risk management, strategy execution, and market analysis skills. Only traders who demonstrate consistent performance gain access to higher capital allocations.
Proprietary trading allows individuals to trade using company funds rather than personal capital. The trading firm and individual trader then share profits based on predetermined agreements.
Kraken plans to integrate Breakout’s technology and services into its existing Kraken Pro trading platform. This integration will expand the exchange’s offerings for professional and institutional traders.
Crypto Exchange Acquisition Trend
The Breakout purchase continues Kraken’s acquisition strategy following its $1.5 billion purchase of NinjaTrader in May 2025. NinjaTrader provides futures and trading software solutions for financial markets.
Other major cryptocurrency exchanges have pursued similar acquisition strategies. Coinbase completed a $2.9 billion acquisition of derivatives exchange Deribit earlier this year.
Crypto.com secured regulatory approval in Cyprus after acquiring A.N. Allnew Investments Ltd. Japanese exchange Coincheck announced plans to purchase Paris-based digital asset brokerage Aplo.
Public Market Preparation
Kraken continues preparing for a potential public offering as early as 2026. The San Francisco-based exchange would become the second major US cryptocurrency exchange to trade publicly after Coinbase’s 2021 Nasdaq debut.
The exchange has expanded services to include stock and exchange-traded fund trading in select US states. Kraken launched regulated cryptocurrency futures trading through Kraken Derivatives U.S. in July 2025.
Financial terms of the Breakout acquisition remain undisclosed. Breakout previously raised $4.5 million in seed funding during 2024 from venture capital investors.
