Kraken Acquires NinjaTrader in $1.5 Billion Deal, Expanding Its Reach in Traditional Finance and Crypto

The acquisition of the futures trading platform strengthens Kraken’s position as a 24/7, always-on technology platform for professional traders, making it a leader in U.S. futures for both traditional and crypto markets.

Kraken, a San Francisco-based crypto exchange, has announced its acquisition of NinjaTrader, a futures trading platform, in a deal valued at $1.5 billion, subject to certain purchase price adjustments. The acquisition comes as Kraken looks to expand its reach in traditional finance and crypto markets, and underscores the growing intersection of the two industries.

According to Kraken, the acquisition will enable the exchange to expand its multi-asset class ambitions, which also include plans for equities trading and payments. The company is looking to become an institutional-grade trading platform where any asset can be traded, anytime.

Background on NinjaTrader

NinjaTrader allows traders to buy and sell contracts that bet on the future price of commodities such as oil, Bitcoin, and copper. The platform is designed for professional traders and provides advanced trading tools and features.

Kraken’s Plans for the Future

Kraken’s co-CEO, Arjun Sethi, stated that the company is planning to branch out into other assets, including equities trading and payments. The acquisition of NinjaTrader is seen as a significant step in achieving this goal.

Regulatory Developments

Kraken has been involved in a number of regulatory developments in recent months. Earlier this year, the Securities and Exchange Commission (SEC) agreed to drop a lawsuit against Kraken, which alleged that the exchange was operating as a securities exchange. The company is also planning to go public, but has not revealed a timeline for the initial public offering (IPO).

Conclusion

The acquisition of NinjaTrader by Kraken is a significant development in the crypto and traditional finance sectors. The deal will enable Kraken to expand its reach in traditional finance and crypto markets, and underscores the growing intersection of the two industries. As the company looks to become an institutional-grade trading platform, the acquisition of NinjaTrader is a key step in achieving this goal.

FAQs

What is NinjaTrader? NinjaTrader is a futures trading platform that allows traders to buy and sell contracts that bet on the future price of commodities such as oil, Bitcoin, and copper.

Why is Kraken acquiring NinjaTrader? Kraken is acquiring NinjaTrader to expand its reach in traditional finance and crypto markets, and to become an institutional-grade trading platform where any asset can be traded, anytime.

What is the value of the acquisition? The acquisition is valued at $1.5 billion, subject to certain purchase price adjustments.

What are Kraken’s plans for the future? Kraken is planning to branch out into other assets, including equities trading and payments, and is looking to become an institutional-grade trading platform where any asset can be traded, anytime.

What is the significance of the acquisition for the crypto and traditional finance sectors? The acquisition is significant for both sectors, as it underscores the growing intersection of the two and the need for institutions to have access to a platform that can facilitate trading in multiple asset classes.