Kraken to Acquire NinjaTrader in a $1.5B Deal: Report

Kraken is set to acquire the US-based retail futures trading platform NinjaTrader in a $1.5 billion deal, The Wall Street Journal reported, citing “people familiar with the matter.” The crypto exchange giant is expected to officially announce the deal as early as today (Thursday).

Tapping into Markets Beyond Crypto

Founded in 2003, NinjaTrader operates as a Futures Commission Merchant and offers futures trading tools to traders. According to its website, the platform has over 1.8 million customers. The acquisition would allow Kraken to expand its user base and enter asset classes beyond cryptocurrencies.

The report further outlined Kraken's plans to expand NinjaTrader’s reach to the United Kingdom, Europe, and Australia. However, NinjaTrader is expected to continue operating as an independent brand rather than under the Kraken umbrella.

Kraken, founded in 2011, is one of the oldest and largest cryptocurrency exchanges based in the US. Interestingly, there were reports of Kraken’s plans to offer US-listed stocks and exchange-traded funds (ETFs) under its new division, Kraken Securities, initially in two countries: the US and the UK.

Kraken’s Expansion Push

The San Francisco-headquartered exchange also acquired a company in Cyprus earlier this year to obtain a Markets in Financial Instruments Directive (MiFID) licence, allowing it to offer derivatives across the European Economic Area. Finance Magnates recently revealed that it acquired a Cypriot firm is linked to contracts for differences (CFDs) broker brand PU Prime.

Meanwhile, the Securities and Exchange Commission (SEC) in the US dropped its lawsuit against Kraken. The case was brought under the previous Chairmanship of Gary Gensler, who stepped down when President Donald Trump took office. The Acting SEC Chair, Mark Uyeda, is also shaping the agency to be more lenient towards crypto and is reportedly scaling down its crypto enforcement team.

Kraken also recently obtained an Electronic Money Institution (EMI) licence from the UK's Financial Conduct Authority (FCA) as part of the company’s growth strategy in the country.