Key Insights
- Kraken becomes the first major cryptocurrency exchange to enter proprietary trading by acquiring evaluation-based firm Breakout for undisclosed terms
- Breakout provides skilled traders up to $200,000 in funded accounts after passing rigorous evaluations, with traders keeping up to 90% of profits
TAMPA, Florida/SAN FRANCISCO (MarketsXplora) – Kraken, one of the world’s longest-standing cryptocurrency exchanges, has acquired Breakout. This proprietary trading firm offers evaluation-based funded accounts to crypto traders, marking the exchange’s aggressive expansion into new trading territories following its recent acquisition of Capitalise.ai.
The acquisition, with undisclosed financial terms, positions the 14-year-old exchange as the first major cryptocurrency platform to directly enter the rapidly-growing retail proprietary trading space. Unlike traditional prop trading firms that operate independently of exchange infrastructure, Kraken’s move combines its established trading platform with Breakout’s performance-verification model.
Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself,” said Arjun Sethi, co-CEO of Kraken. “In a world that is rapidly shifting from who you know to what you know, we want to build systems that reward demonstrated performance, not pedigree.
Kraken buys Breakout for $200,000 funded accounts
Breakout enables qualified traders to access up to $200,000 in notional capital after purchasing and passing rigorous evaluations while maintaining performance above predefined drawdown limits. Successful traders retain up to 90% of profits through on-demand payments, with no personal deposit required beyond the evaluation cost.
The Tampa-based firm, founded in 2023 by Alex Miningham and Dylan Loomer, operates as Breakout Trading Group, LLC. The company secured $4.5 million in seed funding in July 2024 from RockawayX, Mechanism Capital, IOBC Capital, C² Ventures, and Round13 Capital.
The integration represents a fundamental shift in how proprietary trading firms approach talent acquisition and capital deployment. Traditional prop firms focus solely on funding traders, while Kraken’s model combines exchange infrastructure with evaluation-based capital allocation.
Breakout’s evaluation first model is designed to verify risk discipline, strategy consistency, and real market decision making under pressure,” Sethi explained. “This is not simulation for simulation’s sake. It is a filter for scalable signal.
The acquisition advances Kraken’s mission of empowering capable traders to allocate significant capital in crypto markets while reaffirming its commitment to performance-based products accessible to all traders. Breakout gains access to Kraken’s global infrastructure and trusted brand, with plans for direct integration into the Kraken Pro platform for eligible users.
“Breakout gives traders a performance-based starting point. Kraken delivers the scale and tools to grow,” said Alex Miningham, Breakout’s co-founder and CEO. “Together, both companies form a unified ecosystem that supports the full trader journey from education through independent capital deployment.”
Integrating Breakout into Kraken Pro platform
The platform offers strategy development across more than 50 cryptocurrency pairs, with leverage up to 5x available on Bitcoin and Ethereum contracts. Traders must pass evaluations before receiving notional capital allocation and must requalify if they breach drawdown thresholds.
Individual funded accounts are capped at $100,000 in notional capital, though clients can maintain multiple accounts for a maximum aggregate of $200,000. The evaluation-first approach ensures traders demonstrate consistent performance before accessing larger capital allocations.
By integrating Breakout into Kraken, we are building an infrastructure layer where traders can earn their way into size, deploy capital with minimal friction, and get paid on merit,” Sethi continued. “This is how modern capital platforms should work. Transparent, programmable, and open to anyone with an edge.
Founded in 2011, Kraken serves more than 15 million institutions, professional traders, and consumers across its platform ecosystem. The exchange facilitates trading in over 450 digital assets, traditional assets including U.S. futures and ETFs, and six national currencies.
Kraken’s comprehensive product suite includes the Kraken App, Kraken Pro, Krak App, Kraken Institutional, Kraken Onchain, and the Ninja Trader retail platform. The platform provides buying, selling, staking, custody, and advanced trading tools with derivatives and portfolio management capabilities.
The Breakout acquisition follows Kraken’s recent purchase of auto trading platform provider Capitalise.ai, signaling the exchange’s broader strategy to expand beyond traditional spot and derivatives trading into adjacent financial services.
Breakout’s mission centers on rewarding skilled traders with scalable capital, making performance rather than personal wealth the foundation for trading opportunities. The platform maintains transparency through visible leaderboards, clear rules, drawdown controls, and educational resources designed to help traders develop market edges under real trading conditions.
The integration timeline and specific implementation details for Kraken Pro platform access remain undisclosed, though both companies indicated the process would occur gradually to ensure seamless user experience.