Kraken, the prominent cryptocurrency exchange, is nearing the completion of a significant $1.5 billion deal to acquire futures trading firm NinjaTrader, following a series of regulatory victories. This acquisition marks a bold step in Kraken’s expansion strategy, which includes diversifying its offerings and tapping into the lucrative derivatives market.
According to a report from The Wall Street Journal, Kraken is finalizing the acquisition, which will see NinjaTrader, a leader in futures trading, become a subsidiary of the US-based exchange. The deal, expected to be announced within the week, underscores Kraken’s growing ambitions in the derivatives and crypto futures sectors.
This move comes after Kraken resolved its ongoing case with the U.S. Securities and Exchange Commission (SEC), which had been attempting to categorize the exchange as a stock exchange. By acquiring NinjaTrader, Kraken plans to leverage the company’s Futures Commission Merchant (FCM) license to navigate potential regulatory hurdles and expand its product offerings in derivatives trading.
The financial health of Kraken positions the exchange well to close the deal. Last year, Kraken reported revenues exceeding $1.5 billion, doubling its profits in a single year.
The acquisition also opens doors to new markets. Founded in 2003, NinjaTrader has a substantial retail investor base, with over 1.8 million users. The deal will allow Kraken to expand NinjaTrader’s presence into the UK and Australian markets, with Kraken’s existing EMI approval from the UK’s Financial Conduct Authority (FCA) likely easing the company’s entry into those regions.
This strategic move aligns with Kraken’s broader goal to diversify its services. Earlier, the exchange reintroduced its cryptocurrency staking service for U.S. customers and secured a MiFID license to offer crypto derivatives in the European Union, further bolstering its expansion efforts.
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