Kraken Acquires Breakout, Expands Prop Trading with $200K Fund

As reported by Cointelegraph, Kraken has entered the world of proprietary trading by acquiring Breakout, a Tampa-based startup. Breakout is known for backing traders with up to $200,000 in capital once they pass a strict evaluation process. The deal was announced on September 4, 2025, and it signals a new direction for the exchange.

For Kraken, this is more than just a purchase. It is a move to expand its services, strengthen its professional trading tools, and open the door to performance-driven opportunities. By adding Breakout’s evaluation and funding model to its platform, Kraken aims to reward skill over personal wealth.

What Breakout Brings to the Table

Breakout was founded in 2023 and soon built a reputation in the trading world. The startup operates on a merit-based system. Traders are tested for consistency, discipline, and strategy before gaining access to real funds. Those who do well can trade with company capital rather than their own savings.

The incentives are attractive. Breakout lets traders keep up to 90% of profits, with payouts made on demand. The platform also supports over 50 crypto pairs, including popular options like Bitcoin and Ethereum. Traders can use leverage of up to 5x, giving them room to scale.

Since its launch, Breakout has issued more than 20,000 funded accounts. This great record shows both credibility and also transparency. Qualities that Kraken now plans to build on.

Kraken’s Vision: Skill Over Pedigree

Kraken’s leadership has been clear about the reasoning behind this deal. The company wants to allocate capital based on proven results rather than social background or personal wealth. In their view, Breakout’s system filters out noise and highlights genuine skill.

Breakout’s CEO, Alex Miningham, echoed this sentiment. He explained that the acquisition creates “a full ecosystem that supports traders from education through independent capital deployment.” In other words, Kraken will now be able to support talent at every step of the journey.

Integration and Industry Significance

Financial details of the purchase remain private, but the direction is already visible. Breakout’s tools will be folded into Kraken Pro, making it easier for users to move from evaluation to funded trading. This step follows Kraken’s $1.5 billion acquisition of NinjaTrader earlier in 2025. Which was another deal aimed at making its infrastructure stronger.

Together, these moves show a clear plan. Kraken wants to blend advanced tools with access to capital, creating a seamless trading environment. The company is also positioning itself to compete with both retail prop firms and large crypto market makers.

What This Means for Traders and the Crypto Market

For traders, the benefits are immediate. They gain access to great funds without risking their own savings.They also get to keep most of the profits they earn. While Kraken gains by strengthening customer trust and unlocking new income sources.

More widely, this move may shift industry standards. If exchanges begin to integrate prop trading models, access to capital will depend less on personal wealth and more on proven ability. That could push the market toward a more merit-based system.

Looking Ahead

As Breakout becomes part of Kraken’s platform, traders can expect a more seamless experience. They will be able to prove their skills, secure funding, and use strategies without leaving the exchange.

This acquisition is not only about offering capital. It is about reshaping the trading landscape and giving capable traders a fair shot at growth. Kraken is betting on skill, and in doing so, it may set a new standard for the industry.