<h2>In a Nutshell</h2>- Kraken has finalized the acquisition of Breakout, a Tampa-based prop trading firm providing traders access to up to $200,000 in capital.
- After successfully completing assessment challenges, traders using the platform are eligible to retain as much as 90% of the profits they generate.
- This agreement comes after Kraken’s earlier purchase of NinjaTrader for $1.5 billion in May 2025, reflecting their strategy to bolster their trading ecosystem.
- Breakout extends support for more than 50 crypto trading pairs and features leverage of 5x for Bitcoin and Ethereum futures.
- The financial specifics of the acquisition remain undisclosed, although Breakout secured $4.5 million in seed funding during 2024.
The Kraken crypto exchange has successfully acquired Breakout, a proprietary trading platform that furnishes its traders with company-backed funds. The Florida-based startup is set to be integrated into the Kraken Pro platform as the exchange continues to develop its trading infrastructure.
Thrilled to announce that Breakout has joined forces with @krakenfx. Just under 19 months since inception, Breakout has rapidly grown to be a leading name for evaluation-centered prop trading solutions globally. https://t.co/XXjj24bKEK
— Alex (@unclesendit) September 4, 2025
Breakout offers qualifying traders access to up to $200,000 of investment capital upon successful completion of evaluation exercises. The platform gauges risk management skills and the discipline involved in using trading strategies prior to granting fund access.
Traders are entitled to keep up to 90% of earnings originating from profitable trades. The company commenced its operations in 2023 and currently supports trading in excess of 50 crypto assets.
Building Out Trading Capabilities
This purchase signals Kraken’s ongoing commitment to advancing its trading technology. In May of 2025, the exchange completed the acquisition of NinjaTrader, a widely used futures and trading application, in a deal valued at $1.5 billion.
According to Kraken co-CEO Arjun Sethi, this transaction allows for allocating capital based on the skill of traders, not merely on their financial standing. The company aims to reward proven trading competence rather than prioritizing connections or prior background.
Prop trading involves employing the firm’s capital instead of the trader’s own personal funds. Profits are subsequently divided between the trader and the entity providing the capital.
Breakout provides a 5x leverage option on contracts for Bitcoin and Ethereum. Traders are required to uphold specific performance benchmarks or face being re-evaluated if they exceed preset drawdown thresholds.
The platform gathered $4.5 million through seed funding during 2024. Kraken has chosen not to reveal the financial details of this acquisition.
The Bigger Picture
Following the financial crisis of 2008, regulations were brought in within the U.S. banking sector that restricted proprietary trading. This resulted in activity shifting to independent market making firms like Citadel Securities, Jane Street, and Jump Trading.
The crypto market has adopted proprietary trading through entities like Jump Crypto and Cumberland. Retail platforms, for example, Crypto Fund Trader and HyroTrader, also provide assessment-based trading accounts.
Of late, other crypto exchanges have also ventured into acquisitions of similar entities. Coinbase acquired the derivatives exchange Deribit for $2.9 billion back in May 2025.
Crypto.com acquired A.N. Allnew Investments Ltd to secure a MiFID license, allowing for operations within Europe. Coincheck, a Japanese exchange, also announced its plans to acquire Paris-based brokerage Aplo this week.
Potential IPO
Kraken anticipates a potential public offering as early as 2026, according to reports by Bloomberg. If successful, the company will be the second US crypto exchange listed publicly after Coinbase’s Nasdaq listing in 2021.
The exchange has widened its service scope to incorporate stock and ETF trading in select US states. It also introduced regulated crypto futures trading by way of Kraken Derivatives U.S. in July 2025.
Kraken is benefitting from more favorable regulatory environments after President Trump’s election. The SEC dismissed enforcement procedures against Kraken and a few other crypto businesses in March 2025.
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