Kraken Acquires Prop Trading Firm Breakout to Expand Advanced Trading Services

Kraken completed its acquisition of Breakout, a proprietary trading firm that provides capital allocation to skilled crypto traders through performance-based evaluations, expanding the exchange's offerings for advanced market participants, the cryptocurrency exchange announced in a statement on Thursday.

The acquisition expands Kraken's product suite beyond traditional spot and derivatives trading, targeting sophisticated users seeking institutional-scale capital deployment opportunities. The move reflects broader industry trends toward performance-based financial services.

Effective September 1, the deal brings Breakout's "evaluation-first" model to Kraken's client base. Traders can access up to $200,000 in notional capital after purchasing and passing performance assessments while maintaining predetermined risk management parameters.

Successful traders retain up to 90% of profits generated through funded accounts, with payments available on-demand. The model requires traders to demonstrate consistent strategy execution and risk discipline before receiving capital allocation, rather than relying on personal wealth or connections.

Kraken co-CEO Arjun Sethi said the acquisition aligns with the exchange's focus on merit-based systems that reward demonstrated performance over traditional credentials. The evaluation process tests real market decision-making under pressure rather than simulated trading scenarios.

Breakout offers trading across more than 50 cryptocurrency pairs with up to 5x leverage available on Bitcoin and Ethereum contracts. Individual funded accounts are capped at $100,000 in notional capital, though traders can maintain multiple accounts up to the $200,000 aggregate limit.

The proprietary trading model addresses barriers facing skilled traders who lack sufficient capital to implement strategies at meaningful scale. By providing evaluation-based funding, the system enables talent identification without requiring substantial personal investment from participants.

Alex Miningham, Breakout's co-founder and CEO, highlighted the combination of performance-based starting points with Kraken's infrastructure and global reach. The integration will eventually provide seamless access through the Kraken Pro platform for eligible users.

Traders must maintain performance above predefined drawdown limits to retain funded status and must requalify if they breach risk thresholds. The evaluation framework aims to identify traders capable of consistent performance rather than those pursuing high-risk strategies.