Cryptocurrency exchange Kraken announced a revenue of $472 million for the first quarter of 2025, marking a 19% increase compared to the same period last year. This growth was primarily fueled by increased trading activity spurred by heightened market volatility coinciding with the early days of President Trump’s second term.
In a statement issued on Thursday, Kraken highlighted that despite a sequential decrease of 7% from the previous fourth quarter of 2024, the increase in revenue was significantly influenced by the turbulent market conditions.
Kraken Experiences 17% EBITDA Growth
The company’s adjusted EBITDA rose by 17% year-over-year, reaching $187.4 million, alongside a remarkable 29% surge in overall trading volume during the same timeframe.
“While we observed a 7% sequential decline in revenue for Q1 due to softer market conditions, adjusted EBITDA saw a modest 1% increase, showcasing Kraken’s resilience amid seasonal fluctuations,” the company stated in a blog post.
The firm further explained that the unusually high trading activity recorded in Q4 2024 was linked to the U.S. election season, which subsequently declined in the following quarter.
As it looks ahead to a potential public listing scheduled for 2026, Kraken has strategically diversified its services.
Among its recent actions, Kraken acquired NinjaTrader, positioning itself to facilitate derivatives trading in the U.S., and has broadened its offerings to include equities and ETFs through a partnership with Alpaca.
This week, Kraken also launched derivatives trading in the UK, reinforcing its presence in its second-largest market.
Alexia Theodorou, Kraken’s Head of Derivatives, noted that while spot and derivatives trading volumes are currently comparable, the derivatives market possesses far greater growth opportunities.
Additionally, the exchange has introduced a new consumer-oriented financial application called Kraken Pay, as well as an institutional-grade API to enhance access for professional users.
Q1 results are in for @krakenfx!
$472 million gross revenue
Adjusted EBITDA of $187 million (+19% YoY)
Funded accounts growing by 26% YoY
check out the rest here – https://t.co/BlQip0PbUC
and much more on the way for Q2! pic.twitter.com/TH7m3dq0J0
— Dave Ripley (@DavidLRipley) May 1, 2025
In Q1, Kraken reported a remarkable 250% increase in monthly trading volume, coupled with a 26% rise in funded accounts year-over-year.
The company remarked that although assets on the platform continue to grow, their overall value experienced a slight dip due to broader market conditions in the cryptocurrency sector.
Despite the prevailing macroeconomic uncertainties, Kraken reported ongoing progress in capturing market share and enhancing client engagement.
Co-CEO Arjun Sethi reaffirmed the company’s intent to move forward with its planned IPO, even as the sentiment around public offerings cools.
Similarly, other exchanges such as Bullish and Gemini have expressed interest in pursuing public listings, while many remain cautious due to the unpredictable signals from the Trump administration regarding regulatory policies.
Kraken Prepares for 2026 IPO
Kraken is making preparations for an initial public offering (IPO) that could take place in the first quarter of 2026, capitalizing on what appears to be a more favorable regulatory environment under President Trump.
However, the details of Kraken’s IPO plans remain tentative and could evolve in the near future.
Notably, the U.S. Securities and Exchange Commission (SEC) has reportedly agreed in principle to dismiss its ongoing lawsuit against Kraken, as stated by the company.
This dismissal will occur with prejudice, indicating that the case cannot be refiled. Kraken will not concede to any wrongdoing, nor will it incur penalties or alter its business operations.
The SEC initially launched its lawsuit in November 2023, claiming that Kraken operated as an unregistered exchange, broker, clearing agency, and dealer while accusing it of improperly combining customer and corporate funds.
Kraken disputed these allegations, leading a federal judge to determine that the case had sufficient merit to proceed to trial.
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