Kraken Acquires Breakout: Leveling Up Leveraged Bitcoin Trading

Kraken, a leading U.S. crypto exchange, has announced the acquisition of Breakout, a proprietary trading platform. This move signals Kraken's ambition to expand its services for advanced traders, particularly in the realm of leveraged Bitcoin (BTC) and Ethereum (ETH) trading, as it prepares for a potential public offering.

Breakout: Capitalizing on Skill

Breakout allows eligible users to access substantial notional capital – up to $200,000 – while retaining a significant portion (up to 90%) of the profits. The platform emphasizes rewarding skilled traders based on their demonstrated performance, providing opportunity beyond traditional capital access.

"Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself," stated Kraken co-CEO Arjun Sethi.

How It Works

Traders on Breakout can leverage their positions up to 5 times on BTC and ETH contracts. To gain access to notional capital, traders must first pass an evaluation. Furthermore, they are subject to ongoing retests to ensure they maintain performance and avoid breaching drawdown thresholds.

Integration and Future Plans

Kraken plans to integrate Breakout into its Kraken Pro platform. This acquisition aligns with Kraken's broader strategy of offering innovative, performance-based products to its users. Recently, Kraken has also expanded its offerings to include stocks and ETF trading in select U.S. states, and the acquisition of NinjaTrader further demonstrates the exchange's commitment to providing a comprehensive trading ecosystem.

Kraken is eyeing a potential public offering, possibly as early as 2026. If successful, it would become the second U.S.-based crypto exchange to go public, following Coinbase.

Key Takeaways:

• Kraken acquires Breakout to enhance its leveraged trading offerings.
• Traders can access up to $200,000 in notional capital with up to 5x leverage on BTC and ETH contracts.
• Breakout platform emphasizes skill-based capital allocation.
• Kraken plans to integrate Breakout into Kraken Pro.