- Kraken’s acquisition of Breakout boosts its prop trading ecosystem by giving skilled traders access to capital and stronger infrastructure.
- By integrating Breakout into Kraken Pro, the exchange expands tools for advanced traders while preparing for its 2026 public debut.
- The Breakout deal shows Kraken’s long-term strategy to reward trading talent, expand globally, and strengthen its competitive market edge.
Kraken has acquired Breakout, a Tampa-based proprietary trading startup. The acquisition signals the exchange’s intent to build deeper infrastructure for advanced users as it prepares for major milestones, including a possible IPO in 2026.
Launched in 2023, Breakout provides qualified traders with evaluation-based access to up to $200,000 in funds. This paradigm closely reflects Kraken’s larger goal of egalitarian finance by rewarding expertise and risk management above financial resources.
The integration will fold Breakout’s evaluation-driven model directly into Kraken Pro. Hence, traders will be able to showcase strategies, gain access to company-backed capital, and retain up to 90% of profits.
In addition, Breakout provides 5x leverage on Ethereum and Bitcoin contracts and covers more than 50 crypto currencies. Traders who surpass drawdown limitations, however, will be subject to retesting and must adhere to stringent performance requirements.
Expanding Trading Infrastructure
This deal comes only months after Kraken’s $1.5 billion purchase of NinjaTrader in May 2025. Additionally, the firm acquired Capitalise.ai in August to roll out no-code trading automation later this year.
Consequently, the Breakout acquisition fits into a clear pattern of investment in technology that strengthens the professional trading experience. Moreover, Kraken recently secured a Markets in Crypto-Assets Regulation license, giving it wider European market access.
Breakout itself had raised $4.5 million in seed funding in 2024. Its evaluation-based prop trading structure follows a broader trend in both traditional and crypto markets.
After the 2008 financial crisis restricted bank proprietary trading, independent firms like Citadel Securities and Jane Street filled the gap. In crypto, groups such as Jump Crypto and Cumberland have embraced similar models.
Preparing for the Future
Kraken co-CEO Arjun Sethi explained the acquisition: “The deal allows capital allocation based on trading skill rather than financial resources.” That perspective reflects Kraken’s drive to reward ability, not connections. The business also intends to go public as early as 2026, with a $15 billion valuation as its goal.
Kraken’s competitive advantage is strengthened, its trading ecosystem is strengthened, and the exchange is positioned for growth prior to its public launch thanks to this acquisition.
