Kraken parent Payward earnings plunge 71% as crypto trading slows

Payward Inc., the parent company of crypto exchange Kraken, reported a sharp decline in second quarter earnings as weaker trading activity weighed on the broader crypto exchange industry, according to a shareholder letter seen by Bloomberg.

Adjusted pretax earnings fell 71% to $23 million from $79.7 million a year earlier. Adjusted revenue increased 17% year over year to $508 million.

Total transaction volume across Payward’s platform reached $310 billion during the quarter, down 18% from the same period last year.

Despite weaker trading volumes, funded accounts increased 42% to a record 6.6 million. The company defines funded accounts as accounts holding a balance greater than zero.

The results come as falling crypto prices and lower spot trading activity pressure exchanges that rely heavily on trading fees. Bitcoin is trading roughly 50% below its October 2025 record high.

Other major exchanges have faced similar pressure. Gemini reported another quarterly loss on Thursday, while Coinbase posted a net loss for the second quarter in July.

Payward has been expanding beyond traditional crypto spot trading into derivatives, equities and tokenized assets as it seeks to diversify its revenue.

Payward co CEO Arjun Sethi said traditional futures, equities and tokenized equities activity increased even as spot volumes declined across the industry.

Sethi also said Kraken gained spot market share for a third consecutive quarter, with more customers increasingly trading across multiple markets on the platform.

Payward cut about 150 jobs earlier this year, citing efficiency gains from artificial intelligence. The company has also been preparing for a potential initial public offering, although a listing may not take place until later this year or early 2027, Bloomberg previously reported.