Kraken, a major cryptocurrency exchange, has completed its acquisition of Breakout, a proprietary trading firm. This strategic move, which became effective on September 1, is designed to expand Kraken’s offerings for advanced market participants by providing them with institutional-scale capital based on their performance.
Breakout’s model allows skilled crypto traders to access up to $200,000 in notional capital after passing a performance-based evaluation. The system focuses on rewarding demonstrated skill and risk management rather than a trader’s personal wealth. Successful traders are able to keep up to 90% of the profits they generate and can access funds on-demand.
Kraken’s co-CEO, Arjun Sethi, stated that the acquisition aligns with the exchange’s commitment to merit-based systems. The evaluation process is rigorous, testing real-world trading decisions across more than 50 cryptocurrency pairs with up to 5x leverage on Bitcoin and Ethereum contracts.
The acquisition addresses a major barrier for talented traders who lack the capital to execute their strategies on a meaningful scale. According to Alex Miningham, Breakout’s co-founder, the integration will eventually provide seamless access to these services through the Kraken Pro platform. The new system is designed to identify and reward consistent, disciplined trading.
September 2025, Cryptoniteuae
