Kraken Buys NinjaTrader and Posts Strong Q1 Revenue
The firm also completed its acquisition of NinjaTrader in what it calls the largest merger between a crypto and traditional finance firm. The deal will expand Kraken’s offerings to include traditional derivatives, supporting its push toward a 2026 IPO. Meanwhile, Tether posted over $1 billion in operating profit for the quarter, with nearly $120 billion in US Treasury exposure backing its $149 billion USDT market cap.
Despite its robust performance, Tether's excess reserves declined, which raised some concerns among European regulators about systemic risks tied to dollar-based stablecoins. Michael Saylor’s firm Strategy saw Bitcoin yields rise to 13.7% YTD, but missed earnings expectations due to a $5.9 billion unrealized BTC loss. Still, Strategy doubled down, and plans a $21 billion stock offering to fund more Bitcoin acquisitions.
Kraken Revenue Rises Despite Market Dip
Crypto exchange Kraken finalized its acquisition of NinjaTrader, a futures trading platform that is registered with the US Commodity Futures Trading Commission (CFTC). Kraken calls this acquisition the largest merger between a cryptocurrency firm and a traditional finance company.
Announced in a May 1 report, Kraken said that the deal will make it possible for US clients to access traditional derivatives markets and reflects its broader ambition to become a one-stop trading platform. NinjaTrader recently began offering trading for over 11,000 stocks and ETFs to select US users and will now expand its services into the UK, Europe, and Australia. The acquisition also happened as Kraken gears up for an initial public offering in early 2026 and is exploring a debt package of between $200 million and $1 billion to support the move.
In crypto, an Initial Public Offering (IPO) refers to when a crypto company—like an exchange or blockchain firm—lists its shares on a traditional stock exchange for the first time to raise capital from public investors. It's the same process used by companies in other industries, and it allows broader market participation in the company’s equity.
In the same report, Kraken revealed that its first quarter revenue rose 19% year-on-year to $471.7 million. However, that figure still represented a 6.8% decline from the previous quarter, with trading volume dropping 9.6% to $208.7 billion and custodied assets falling 18% to $34.9 billion.
(Source: Kraken Q1 financial update)
Kraken attributed the decline in activity to a broader market slowdown that was triggered by US President Donald Trump’s tariff threats, which contributed to an 18% decrease in total crypto market capitalization during the quarter. The firm also pointed out that Q4 2024 saw near-record activity levels, boosted by the volatility after Trump’s election win in November.
Despite the softer market conditions, Kraken reported a 1% rise in adjusted EBITDA to $187.4 million and a 10% increase in funded accounts, reaching 3.9 million. The company also underwent a major internal restructuring under co-CEO Arjun Sethi, who was appointed in October and has since laid off around 400 employees.
Tether Posts Over $1B Profit
Other crypto firms also recently shared their Q1 performances. Tether, the issuer of the world’s largest stablecoin, reported over $1 billion in operating profit for the first quarter of 2025, along with nearly $120 billion in exposure to US Treasurys.
Tether’s Q1 financial report
The company disclosed holding $98.5 billion in direct US Treasury bills and an additional $23 billion through repurchase agreements and other cash-equivalent instruments. These holdings underpin the company’s USDT stablecoin, which now has a market cap of close to $149 billion.
USDT’s all-time market cap (Source: CoinMarketCap)
Despite the strong financials, Tether’s excess reserves for USDT declined to $5.6 billion from $7.1 billion at the end of 2024. Still, the company said that it continues to leverage its surplus capital to fund strategic investments across sectors like renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure. During the first quarter, USDT’s circulating supply grew by approximately $7 billion, while the number of user wallets increased by 46 million. This signals that there is still strong demand for the stablecoin.
Tether’s dominant position in the stablecoin market, alongside Circle’s USDC, gives the two issuers a combined 87% market share of dollar-pegged tokens. The US Treasury projected that the overall market cap for dollar-backed stablecoins could hit $2 trillion by 2028.
However, European officials raised red flags over this growing reliance on dollar-based tokens, as they believe it poses potential systemic risks. The Bank of Italy warned that disruptions in stablecoin markets or their underlying bond holdings could reverberate across the global financial system.
Saylor’s Strategy Misses Earnings Estimates
Michael Saylor’s Bitcoin-focused firm Strategy, formerly known as MicroStrategy, reported a year-to-date yield of 13.7% on its Bitcoin holdings. This translates to an unofficial gain of over 61,000 BTC worth approximately $5.8 billion. In its May 1 earnings release, Strategy called these figures internal benchmarks for measuring the success of its Bitcoin investment strategy. The firm’s chief financial officer, Andrew Kang, stated that it now aims for a 25% Bitcoin yield and a total gain of $15 billion by the end of the year.
Highlights from Stategy’s Q1 financial results
Despite strong performance in its Bitcoin portfolio, Strategy missed Wall Street’s expectations for the first quarter. The company posted $111.1 million in revenue, which is down 3.6% from the same period last year and around 5% below analyst forecasts. It also reported a big net loss of $4.2 billion, or $16.49 per diluted share, far exceeding the projected 11 cents per share loss. The loss was largely attributed to a $5.9 billion unrealized loss on its Bitcoin holdings, which caused total operating expenses to surge by close to 2,000% to $6 billion.
To fund future Bitcoin acquisitions, Strategy announced plans to offer up to $21 billion in additional stock. The firm’s aggressive Bitcoin strategy continues, with over 550,000 BTC acquired since 2020 at an average price of $68,500 per coin, totaling nearly $38 billion in costs. On May 1, the value of its Bitcoin treasury grew to more than $53 billion.
Shares in Strategy (MSTR) ended May 1 up 0.39% at $381.60, though they dipped slightly in after-hours trading. The stock is up more than 31.5% year-to-date but is still way below its November 2024 high of over $470.
Strategy stock price over the past 24 hours (Source: Google Finance)
Strategy is still the largest corporate holder of Bitcoin, contributing to the total of over $73 billion held by public companies. Combined with Bitcoin funds and institutional investors, more than $200 billion worth of Bitcoin is now in the hands of major financial players. Some industry observers warn that continued institutional accumulation, led by firms like Strategy, could eventually crowd out retail investors from the market.
Kraken Buys NinjaTrader and Posts Strong Q1 Revenue
The firm also completed its acquisition of NinjaTrader in what it calls the largest merger between a crypto and traditional finance firm. The deal will expand Kraken’s offerings to include traditional derivatives, supporting its push toward a 2026 IPO. Meanwhile, Tether posted over $1 billion in operating profit for the quarter, with nearly $120 billion in US Treasury exposure backing its $149 billion USDT market cap.
Despite its robust performance, Tether's excess reserves declined, which raised some concerns among European regulators about systemic risks tied to dollar-based stablecoins. Michael Saylor’s firm Strategy saw Bitcoin yields rise to 13.7% YTD, but missed earnings expectations due to a $5.9 billion unrealized BTC loss. Still, Strategy doubled down, and plans a $21 billion stock offering to fund more Bitcoin acquisitions.
Kraken Revenue Rises Despite Market Dip
Crypto exchange Kraken finalized its acquisition of NinjaTrader, a futures trading platform that is registered with the US Commodity Futures Trading Commission (CFTC). Kraken calls this acquisition the largest merger between a cryptocurrency firm and a traditional finance company.
Announced in a May 1 report, Kraken said that the deal will make it possible for US clients to access traditional derivatives markets and reflects its broader ambition to become a one-stop trading platform. NinjaTrader recently began offering trading for over 11,000 stocks and ETFs to select US users and will now expand its services into the UK, Europe, and Australia. The acquisition also happened as Kraken gears up for an initial public offering in early 2026 and is exploring a debt package of between $200 million and $1 billion to support the move.
In crypto, an Initial Public Offering (IPO) refers to when a crypto company—like an exchange or blockchain firm—lists its shares on a traditional stock exchange for the first time to raise capital from public investors. It's the same process used by companies in other industries, and it allows broader market participation in the company’s equity.
In the same report, Kraken revealed that its first quarter revenue rose 19% year-on-year to $471.7 million. However, that figure still represented a 6.8% decline from the previous quarter, with trading volume dropping 9.6% to $208.7 billion and custodied assets falling 18% to $34.9 billion.
(Source: Kraken Q1 financial update)
Kraken attributed the decline in activity to a broader market slowdown that was triggered by US President Donald Trump’s tariff threats, which contributed to an 18% decrease in total crypto market capitalization during the quarter. The firm also pointed out that Q4 2024 saw near-record activity levels, boosted by the volatility after Trump’s election win in November.
Despite the softer market conditions, Kraken reported a 1% rise in adjusted EBITDA to $187.4 million and a 10% increase in funded accounts, reaching 3.9 million. The company also underwent a major internal restructuring under co-CEO Arjun Sethi, who was appointed in October and has since laid off around 400 employees.
Tether Posts Over $1B Profit
Other crypto firms also recently shared their Q1 performances. Tether, the issuer of the world’s largest stablecoin, reported over $1 billion in operating profit for the first quarter of 2025, along with nearly $120 billion in exposure to US Treasurys.
Tether’s Q1 financial report
The company disclosed holding $98.5 billion in direct US Treasury bills and an additional $23 billion through repurchase agreements and other cash-equivalent instruments. These holdings underpin the company’s USDT stablecoin, which now has a market cap of close to $149 billion.
USDT’s all-time market cap (Source: CoinMarketCap)
Despite the strong financials, Tether’s excess reserves for USDT declined to $5.6 billion from $7.1 billion at the end of 2024. Still, the company said that it continues to leverage its surplus capital to fund strategic investments across sectors like renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure. During the first quarter, USDT’s circulating supply grew by approximately $7 billion, while the number of user wallets increased by 46 million. This signals that there is still strong demand for the stablecoin.
Tether’s dominant position in the stablecoin market, alongside Circle’s USDC, gives the two issuers a combined 87% market share of dollar-pegged tokens. The US Treasury projected that the overall market cap for dollar-backed stablecoins could hit $2 trillion by 2028.
However, European officials raised red flags over this growing reliance on dollar-based tokens, as they believe it poses potential systemic risks. The Bank of Italy warned that disruptions in stablecoin markets or their underlying bond holdings could reverberate across the global financial system.
Saylor’s Strategy Misses Earnings Estimates
Michael Saylor’s Bitcoin-focused firm Strategy, formerly known as MicroStrategy, reported a year-to-date yield of 13.7% on its Bitcoin holdings. This translates to an unofficial gain of over 61,000 BTC worth approximately $5.8 billion. In its May 1 earnings release, Strategy called these figures internal benchmarks for measuring the success of its Bitcoin investment strategy. The firm’s chief financial officer, Andrew Kang, stated that it now aims for a 25% Bitcoin yield and a total gain of $15 billion by the end of the year.
Highlights from Stategy’s Q1 financial results
Despite strong performance in its Bitcoin portfolio, Strategy missed Wall Street’s expectations for the first quarter. The company posted $111.1 million in revenue, which is down 3.6% from the same period last year and around 5% below analyst forecasts. It also reported a big net loss of $4.2 billion, or $16.49 per diluted share, far exceeding the projected 11 cents per share loss. The loss was largely attributed to a $5.9 billion unrealized loss on its Bitcoin holdings, which caused total operating expenses to surge by close to 2,000% to $6 billion.
To fund future Bitcoin acquisitions, Strategy announced plans to offer up to $21 billion in additional stock. The firm’s aggressive Bitcoin strategy continues, with over 550,000 BTC acquired since 2020 at an average price of $68,500 per coin, totaling nearly $38 billion in costs. On May 1, the value of its Bitcoin treasury grew to more than $53 billion.
Shares in Strategy (MSTR) ended May 1 up 0.39% at $381.60, though they dipped slightly in after-hours trading. The stock is up more than 31.5% year-to-date but is still way below its November 2024 high of over $470.
Strategy stock price over the past 24 hours (Source: Google Finance)
Strategy is still the largest corporate holder of Bitcoin, contributing to the total of over $73 billion held by public companies. Combined with Bitcoin funds and institutional investors, more than $200 billion worth of Bitcoin is now in the hands of major financial players. Some industry observers warn that continued institutional accumulation, led by firms like Strategy, could eventually crowd out retail investors from the market.