Kraken Parent Payward Earnings Plummet 71% Amid Crypto Trading Slump

Kraken parent company Payward Inc. reported a sharp decline in second quarter earnings due to weaker trading activity across the crypto exchange industry.

Adjusted pretax earnings fell 71% to $23 million from $79.7 million a year earlier, while 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.

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

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