Kraken exchange is set to acquire NinjaTrader, a U.S. retail futures trading platform, in a deal worth about 1.5 billion.
According to sources reported by The Wall Street Journal, an official announcement is expected on Thursday, March 20.
The acquisition would enable Kraken to capitalize on NinjaTrader’s Futures Commission Merchant license, significantly expanding its portfolio of cryptocurrency futures and derivatives products available to users across the United States. This strategic move aligns with Kraken’s vision of broadening its offerings and strengthening its position in the rapidly growing crypto market.
NinjaTrader, established in 2003, currently serves over 1.8 million retail investors. Accessing this extensive user base would enhance Kraken’s market presence and support NinjaTrader’s planned expansion into the UK, Europe, and Australia. Kraken’s existing regulatory approvals, including its Electronic Money Institution license from the UK’s Financial Conduct Authority and its MiFID license for the EU, could further streamline the expansion process and facilitate cross-border operations.
Kraken reported a revenue of $1.5 billion for 2024, more than doubling its earnings from the previous year. The exchange holds $42.8 billion in assets, operates 2.5 million funded accounts, and recorded a total trade volume of 665 billion for the year, demonstrating its strong financial foundation for the acquisition.
The timing of this acquisition also aligns with Kraken’s legal victory, as the U.S. SEC agreed to dismiss its lawsuit without penalties or an admission of wrongdoing. This favourable outcome removes a regulatory barrier, enabling Kraken to pursue expansion confidently.
In addition to its U.S. growth plans, Kraken plans to re-enter the Indian market, focusing on regulatory compliance after a ban in early 2024 due to non-compliance with anti-money laundering regulations. The company has appointed Vishesh Khurana, co-founder of Shiprocket, as an advisor to oversee local operations. By collaborating with Indian authorities, Kraken aims to rebuild its presence and restore user confidence.
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