Payward, the parent company of Kraken, reported $507 million in adjusted revenue for the first quarter of 2026, marking a 3% year-over-year increase. This growth came despite a challenging crypto market where Bitcoin dropped 22%, total market capitalization fell 23%, and industry spot volumes decreased 38%. The standout performer was derivatives trading, which saw daily average revenue trades jump 51% compared to the same period last year.
The surge in derivatives activity was fueled by the expansion of platforms such as NinjaTrader and Breakout, as well as Kraken’s broader build-out of its futures offerings. Management noted that this strategic focus helps offset the cyclical nature of spot trading. Adjusted EBITDA fell to $18 million for the quarter, as Payward intentionally increased spending on mergers and acquisitions, product development, and regulatory infrastructure. The company believes that investing during the current bear market will position it for stronger growth when market conditions improve.
Kraken’s spot market share rose from approximately 3.5% in mid-2025 to 5.2% in March 2026, a significant increase in a competitive landscape. The number of funded accounts grew 47% year-over-year to 6.1 million, while total client assets on the platform reached $40 billion. Co-CEO Arjun Sethi emphasized the company’s commitment to investing while others pull back, stating that this strategy validates their long-term approach. Payward’s ability to grow revenue and capture market share amid a downturn highlights the strength of its diversified revenue model, particularly from derivatives. If current trends continue, the company’s investments could yield substantial benefits when the next crypto upcycle arrives.