Kraken announced on Sept. 4 that it has acquired Breakout, introducing an evaluation-based funding model into its ecosystem. The program will soon roll out on Kraken Pro.
Performance-driven model for skilled traders
Breakout enables advanced traders to access up to $200,000 in notional capital after passing a structured evaluation. To qualify, traders must prove discipline in live market conditions, adhering to strict drawdown rules before earning a funded account. Once approved, they can retain up to 90% of profits, available for withdrawal on demand.
“Breakout gives us a way to allocate capital based on proof of skill rather than access to capital itself,” said Kraken co-CEO Arjun Sethi. “In a world rapidly shifting from who you know to what you know, we want systems that reward demonstrated performance—not pedigree.”
Built for crypto-native strategies, Breakout supports over 50 trading pairs with up to 5x leverage on Bitcoin and Ethereum contracts. Traders who exceed drawdown limits must requalify, underscoring the model’s focus on consistency and risk control.
For Breakout, the acquisition brings access to Kraken’s global infrastructure and liquidity, allowing the trader-first model to scale worldwide.
Part of Kraken’s broader expansion
The deal reflects Kraken’s ongoing push to serve advanced traders while preparing for major milestones. In August, Kraken acquired Capitalise.ai to add no-code, natural-language trading automation, with rollout slated for later this year.
The firm also recently secured a Markets in Crypto-Assets (MiCA) license, granting regulated access across the European Economic Area. Looking ahead, Kraken is preparing for a potential IPO in early 2026, targeting a $15 billion valuation after raising $500 million.
By combining Breakout’s evaluation-based framework with Kraken’s reach, liquidity, and security, the company aims to build a platform where traders worldwide can prove their skill, manage risk, and scale with confidence.
