Kraken is pushing deeper into performance-driven trading with its acquisition of Breakout, a proprietary trading firm that funds qualified crypto traders based on merit rather than access to capital.
Summary
- Kraken acquires Breakout to integrate evaluation-based prop trading into Kraken Pro.
- Traders can access up to $200K in capital after passing strict risk evaluations, keeping 90% of profits.
- The deal strengthens Kraken’s advanced trading suite as it prepares for a potential IPO in 2026.
The deal, announced on Sept. 4, brings a new evaluation-based model into Kraken’s ecosystem and will soon be integrated into Kraken Pro.
Performance-first model for advanced traders
Breakout allows skilled traders to access up to $200,000 in notional capital once they pass a structured evaluation. The process requires traders to demonstrate discipline under real market conditions, meeting strict drawdown rules before earning a funded account. Successful traders keep up to 90% of profits, which are paid out on demand.
“Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself,” said Kraken co-CEO Arjun Sethi. “In a world that is rapidly shifting from who you know to what you know, we want to build systems that reward demonstrated performance, not pedigree.”
The system is designed for crypto-native strategies, offering more than 50 trading pairs with up to 5x leverage on Bitcoin (BTC) and Ethereum (ETH) contracts. Traders who breach drawdown limits must requalify, reinforcing Breakout’s focus on risk management and consistency.
For Breakout, the deal provides access to Kraken’s infrastructure and global reach, ensuring scalability for its trader-first model.
Kraken’s wider growth push
The acquisition fits into Kraken’s wider strategy of building tools for advanced users while preparing for major milestones. In August, Kraken acquired Capitalise.ai to bring no-code, natural-language trading automation to its platform, with rollout expected later this year.
The firm also secured a Markets in Crypto-Assets Regulation license, giving it regulated access across the European Economic Area. Looking ahead, Kraken is preparing for a potential initial public offering in early 2026, targeting a $15 billion valuation after a $500 million raise.
The latest integration is at the heart of Kraken’s mission to create equitable financial systems. By combining Breakout’s evaluation-driven framework with Kraken’s liquidity, security, and reach, the company aims to build a platform where global traders can prove themselves and scale with confidence.
Source: https://crypto.news/kraken-acquires-breakout-advanced-trading-2025/