Move follows $1.5B NinjaTrader deal as exchange doubles down on trading infrastructure
Kraken has entered the proprietary trading business with the acquisition of Breakout, a Tampa-based startup that provides traders with access to capital through an evaluation-based funding model. The move marks another step in Kraken’s broader push into trading infrastructure, following its $1.5 billion acquisition of NinjaTrader earlier this year.
Announced on Thursday, the deal gives Kraken a new platform where traders can access up to $200,000 in trading capital, provided they pass rigorous evaluations that measure risk management and strategy execution.
“Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself. We want to build systems that reward demonstrated performance, not pedigree,” Kraken co-CEO Arjun Sethi said in a statement.
On Breakout’s platform, traders can keep up to 90% of profits, positioning it as one of the most competitive profit-sharing models in the sector. Launched in 2023, the startup supports more than 50 crypto trading pairs, including leveraged contracts on Bitcoin (BTC $110,630) and Ether (ETH $4,302).
Part of a broader acquisition trend
The financial terms of the deal were not disclosed. Breakout, which raised $4.5 million in seed funding in 2024, will be gradually integrated into Kraken Pro, the exchange’s advanced trading suite.
This is Kraken’s second major acquisition in 2025, following its purchase of NinjaTrader, a US-based futures and trading software platform. Analysts see the moves as part of Kraken’s strategy to offer traditional finance-style trading tools within the crypto ecosystem.
Prop trading’s growing role in crypto
Proprietary, or prop trading, involves traders using a company’s capital rather than their own, with profits split between the firm and the trader. While US banks were restricted from prop trading after the 2008 financial crisis, the practice thrives in independent firms like Citadel Securities, Jane Street, and Jump Trading.
In the crypto space, prop trading has grown steadily. Firms such as Jump Crypto and DRW’s Cumberland deploy capital in both market-making and speculative strategies, while retail-oriented platforms like Crypto Fund Trader, HyroTrader, and Breakout give individuals access to evaluation-based funding accounts.
By acquiring Breakout, Kraken positions itself at the intersection of retail and institutional trading, betting that demand for performance-driven capital access will continue to grow.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.