Kraken cuts jobs, delays IPO to 2027 amid AI shift

Kraken cut 150 jobs due to AI-driven efficiency and delayed its US IPO to 2027. Despite market challenges, Q1 2026 revenue rose 3% to $507M, with derivatives up 51%. Acquisitions and account growth remain strong.

Kraken and its parent company, Payward, have made notable adjustments in response to challenging crypto market conditions. The company reduced its workforce by about 150 positions, or roughly 5% of its staff, citing improved operational efficiency from integrating artificial intelligence. This move aligns with a broader industry trend, as other crypto firms also restructure around AI technologies. Despite the layoffs, Payward reported an adjusted Q1 2026 revenue of $507 million, a 3% year-over-year increase. Its derivatives segment saw impressive growth, rising by 51%. The number of funded accounts climbed 47% to 6.1 million, and assets on the platform reached $40 billion. Payward has been active in acquisitions, investing approximately $2.65 billion in companies such as NinjaTrader, Bitnomial, and Reap Technologies. However, the company’s planned US IPO, initially expected in 2026, has been postponed to 2027 following a confidential SEC filing and a pause due to current market conditions. Payward continues to seek private funding at a $20 billion valuation, down from its late 2025 peak.