Payward, Kraken’s parent, grew Q1 2026 adjusted revenue 3% to $507m as derivatives jumped 51%, even while Bitcoin, market cap and spot volumes all saw steep double‑digit drops.
Summary
- Payward, Kraken’s parent, reported Q1 2026 adjusted revenue of $507 million, up 3% year-on-year despite a sharp crypto market downturn.
- Derivatives were the standout, with daily average revenue trades surging 51% on the back of NinjaTrader, Breakout and expanded futures activity.
- Kraken’s spot market share climbed from roughly 3.5% in mid-2025 to 5.2% in March 2026, while funded accounts rose 47% year-on-year to 6.1 million and platform assets hit $40 billion.
Kraken parent Payward has posted Q1 2026 adjusted revenue of $507 million, a 3% increase from a year earlier, even as Bitcoin, total crypto market capitalization and industry spot volumes all suffered double-digit declines, according to CoinDesk. During the quarter, Bitcoin fell 22%, overall crypto market cap slid 23% and spot trading volume across the industry dropped 38%, underscoring how unusual it is for a major exchange group to grow topline in that environment.
Payward grows through a brutal quarter for crypto
The outperformance was driven in large part by derivatives, where Payward’s futures business saw daily average revenue trades jump 51% year-on-year. Management attributed that surge to the expansion of NinjaTrader and Breakout, as well as the broader build-out of Kraken’s derivatives franchise, which is increasingly offsetting cyclicality in spot trading.
Despite the revenue growth, adjusted EBITDA declined to $18 million in the quarter as the company leaned into spending. Payward said it is deliberately prioritizing mergers and acquisitions, product development and regulatory infrastructure over near-term profitability, characterizing the current bear-market stretch as the right time to invest.
Market share gains and user growth
The company’s strategic push appears to be translating into real market-share gains. Payward disclosed that Kraken’s spot market share has climbed from about 3.5% in mid-2025 to 5.2% in March 2026, a meaningful jump in a market where incremental share is typically hard-won.
User metrics are also moving sharply higher: the number of funded accounts on Kraken grew 47% year-on-year to 6.1 million in Q1 2026, while total client assets on the platform rose to $40 billion. Co-CEO Arjun Sethi framed that performance as validation of the firm’s long-term strategy, saying, “While other companies choose to contract, we choose to continue investing.”
That stance stands in contrast to rivals that have cut headcount, scaled back product lines or pulled out of tougher regulatory jurisdictions over the past year. If the derivatives momentum and market-share gains continue, Payward’s decision to endure thinner EBITDA today in exchange for deeper global footprint and more diversified revenue streams could leave Kraken better positioned when the next upcycle in crypto volumes arrives.
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