Kraken Parent Company Q3 Financial Report: Total Revenue Down 12% YoY to $487 million, Adjusted EBITDA Down 67% YoY to $60 million

BlockBeats news, November 13 - According to Bloomberg, Payward, the parent company of crypto trading platform Kraken, reported adjusted EBITDA of $60 million in the third quarter, down 67% year-over-year but up 163% quarter-over-quarter. The platform's total revenue was $487 million, down 12% year-over-year and up 12% quarter-over-quarter; total trading volume fell 30% year-over-year to $353 billion.

Despite the decline in trading volume, Payward's number of funded accounts grew 37% year-over-year to 7.1 million, referring to accounts with a balance greater than zero. Bitcoin rose about 40% from mid-August to early October before falling back again amid concerns over inflation and the impact of the U.S. midterm elections on the industry. Trading fees are the main source of revenue for many crypto trading platforms, and falling coin prices tend to dampen trading activity.

To broaden its revenue streams, Payward is expanding its stock tokenization business and plans to offer on-chain perpetual contracts to U.S. customers after obtaining regulatory approval. The company reached an agreement in October to acquire Saldo Bank; Kraken also plans to enter the UAE market after obtaining full approval from Dubai regulators. The shareholder letter also disclosed that Payward plans to enter the prediction market and issue its own token, but no timeline was announced.

Payward laid off about 150 employees earlier this year, citing the use of AI to improve efficiency. According to previous Bloomberg reports, its IPO may not take place until 2027. Performance among other trading platforms has also diverged: Gemini's third-quarter revenue fell 19% year-over-year but losses narrowed; Coinbase's revenue fell 35% year-over-year but it returned to profitability.