Crypto Exchange Kraken Posts $1.5 Billion Revenue, Touts Transparency and Long-Term Growth

Kraken, one of the world's oldest and largest cryptocurrency exchanges, is celebrating a year of remarkable growth, reporting $1.5 billion in revenue for 2024. In a rare move for a privately held crypto exchange, co-CEO Arjun Sethi highlighted the company's focus on sustainable growth, deep liquidity, and transparency, contrasting Kraken's approach with the "vanity metrics" often touted in the industry.

Built to Last: Kraken's Focus on Fundamentals

Founded in 2011, Kraken has long prioritized security and reliability, a strategy that has paid off. The exchange has executed 2.5 billion trades since its inception, boasting 99.9% uptime and sub-2 millisecond latency. This focus on a strong technical foundation, coupled with increasing regulatory clarity and industry tailwinds, has propelled Kraken's recent success.

Transparency as Currency: Proof of Reserves and Accountability

In a departure from the norm for private crypto companies, Kraken released key financial highlights for 2024. Revenue reached $1.5 billion, a 128% increase year-over-year, with adjusted EBITDA hitting $380 million. The platform also saw a surge in client assets, reaching $42.8 billion, and now serves 2.5 million funded accounts. Notably, the average revenue per customer is over $2,000, a figure that surpasses many traditional and crypto exchanges.

One of Kraken's core principles from day one has been accountability - to our customers, shareholders and employees," said Sethi. He further emphasized their commitment to transparency, highlighting the exchange's regular publication of Proof of Reserves audits. "The trust that we've built with our clients through this transparency is our currency, and it's foundational to who we are," he added.

Deep Liquidity: A Magnet for Clients and Growth

Kraken's success is also attributed to its deep liquidity pools, particularly in stable-to-fiat pairs, where it claims a greater than 40% global market share among major centralized exchanges. This liquidity attracts more clients, drives new product adoption, and fuels continued expansion, according to the company.

The Kraken Way: Organic Growth Over Quick Wins

Unlike many competitors, Kraken has raised a relatively modest $27 million in primary capital throughout its 14-year history, focusing instead on organic growth and disciplined execution. This, Sethi argues, has allowed them to build for "hypergrowth, stability, and scale."