Kraken’s Breakout Trading Platform Acquisition Sparks IPO Speculation Frenzy

Kraken just dropped a bombshell acquisition—snapping up breakout trading platform in a move that screams strategic positioning.

The IPO Whisper Campaign

Wall Street's already buzzing with speculation. This acquisition isn't just about expanding product offerings—it's about polishing the balance sheet before ringing the opening bell on Wall Street. Because nothing says 'we're ready for prime time' like buying your way into new revenue streams.

Timing the Public Markets

Kraken's playing chess while others play checkers. They're building the narrative, stacking the numbers, and positioning for that sweet public market validation. Because in today's market, sometimes you need to acquire growth rather than grow organically—Wall Street loves a good growth story, even if it's purchased rather than built.

One cynical finance pro's take: 'Another crypto firm buying revenue multiples before going public? How original—they must have hired bankers from the 2021 SPAC playbook.'

Kraken’s Breakout Deal

Kraken has been looking at a few new expansions recently, as the popular CEX has shown an interest in tokenizing US stocks and ETFs. Its latest acquisition, however, is something of a curveball. Kraken has purchased Breakout, a prop trading firm, potentially opening new options for customers:

Big news

Kraken@Breakoutprop = a new path for elite crypto traders.

Get funded with up to $200K
No personal deposit
Keep up to 90% of the profits

Are you ready to scale your trading strategy? pic.twitter.com/doSyGjxJx5

According to Kraken’s blog, its users will now be able to access Breakout’s funded trading mechanisms. Essentially, this means that retail investors can apply to gain access to $200,000 in live trading capital.

Approved users can then use this capital to make real token investments, and Kraken will keep around 20% of the profits.

Breakout’s own fan community has been overjoyed at the Kraken buyout. The firm was established in 2023 by two veteran crypto traders, and this deal is a major coup. It’s not clear how the company’s pioneers will be compensated for this deal, but it’s a noteworthy milestone of success for this young startup.

Is Kraken About To Go Public?

The confusion, instead, is coming from Kraken’s community. Kraken’s press release mentions some ways that it and Breakout will both benefit, but there isn’t a TON of natural synergy. Some enthusiasts have instead speculated that the exchange is laying the groundwork for a future IPO:

weird acquisition by @krakenfx , not rly a vertical that is synergistic with exchanges , if u know the funded acc business model , youll know why

suspect kraken bought them to bolster their revenue story going into IPO https://t.co/wC42LrPOpg

Since Circle’s IPO in June proved massively successful, other major crypto firms have either conducted or are seriously considering their own launches. Kraken’s funded trading with Breakout pays out in USDC, representing another possible connection. Maybe this exchange is planning to join the trend?

If Kraken were trying to launch an IPO, the Breakout acquisition WOULD fulfill many of its goals. The deal would juice user activity and create a new revenue stream, while also adding extra attention to Kraken’s brand.

Other Web3 companies have conducted similar acquisitions in the lead-up to their own IPOs.

Still, this is all speculation. Neither Kraken nor Breakout has given any direct indication that an IPO is coming. This deal is a big development all on its own. If it also signaled a possible future business deal, that’d be a cherry on top.