Kraken parent company Payward reported adjusted EBITDA of $60 million in the third quarter, down 67% year over year. In the same shareholder letter, the platform’s total profit of $487 million was down just 12%, while trading volume of $353 billion fell 30%.
Profits fell much faster than revenue. Funded accounts rose 37% year over year to 7.1 million: the number of accounts increased, but trading volume shrank 30%. EBITDA rose 163% quarter over quarter, which also shows that the second-quarter baseline was low. User growth has not translated into trading growth.
The company also plans to issue its own token and launch prediction markets, but has given no timeline. Bloomberg previously reported that the IPO could be pushed back to 2027. Next, watch to see whether trading volume can hold steady in the fourth quarter.
#Kraken #Exchange Earnings
Profits fell much faster than revenue. Funded accounts rose 37% year over year to 7.1 million: the number of accounts increased, but trading volume shrank 30%. EBITDA rose 163% quarter over quarter, which also shows that the second-quarter baseline was low. User growth has not translated into trading growth.
The company also plans to issue its own token and launch prediction markets, but has given no timeline. Bloomberg previously reported that the IPO could be pushed back to 2027. Next, watch to see whether trading volume can hold steady in the fourth quarter.
#Kraken #Exchange Earnings