Kraken Parent Company Cuts 150 Jobs Amid IPO Delays and $20B Valuation

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Kraken Parent Payward Cuts 150 Jobs as IPO Plans Stay on Ice

Key Highlights

  • Payward, Kraken’s parent company, is cutting about 150 jobs out of 3,000 employees as part of restructuring ahead of a possible IPO.
  • The company has filed a confidential S-1 with the U.S. SEC, though it paused IPO plans earlier due to weak market conditions.
  • Payward is growing through major acquisitions, and is also raising capital at around a $20B valuation while adjusting costs.

I just heard some news about Kraken, the crypto exchange I use. Apparently, their parent company, Payward, is laying off around 150 people. It’s a bit concerning, but they have about 3,000 employees total, so it’s a relatively small percentage, but still a sign of the current market conditions.

These cuts are reportedly part of the company’s strategy to streamline operations in anticipation of potentially going public.

Kraken hasn’t publicly commented on the situation, but in a statement, the company said it frequently assesses its organization to ensure it has the best team for growth and customer service.

IPO plans still alive but on hold

On November 19th, the company submitted a preliminary, confidential S-1 filing with the Securities and Exchange Commission – a necessary first step for any company planning to offer shares to the public.

This doesn’t guarantee an IPO is coming anytime soon, or even at all, but it indicates the company is taking steps to get ready. Previously, in March, Kraken put IPO plans on hold, explaining that market conditions weren’t favorable.

Despite the challenges, the company hasn’t given up on the idea and is holding off until things improve before proceeding.

During the Consensus crypto conference in Miami, Kraken co-CEO Arjun Sethi announced the company is nearly prepared for an initial public offering (IPO), estimating they are “80% ready.” Sources also indicate that Payward, another crypto company, is seeking new funding that would value it around $20 billion.

Big moves in acquisitions ahead of IPO

As a crypto investor, I’ve been watching this company’s moves closely. They recently acquired Bitnomial, a platform for trading crypto derivatives, for $550 million. But their biggest move yet was buying NinjaTrader in 2025 for a whopping $1.5 billion! They’ve stated this is all about building a solid foundation for future growth, and to be honest, it makes sense. They’re also streamlining things by making some cuts to their workforce, which is a common strategy when you’re scaling up like this.

Industry’s recent wide job cuts 

Similar to this company, many others in the cryptocurrency industry have also been reducing their workforce, often due to the same challenges.

Companies such as Dune, Block, Crypto.com, Coinbase, and Gemini have all recently laid off employees as part of company restructuring.

Some people think job cuts are happening because AI tools are letting companies accomplish more with a smaller workforce. However, others argue that AI isn’t the sole cause, and that companies are also reducing costs and improving efficiency due to current economic challenges.

This decision supports Payward’s goal of eventually becoming a publicly traded company, though the specific timeframe depends on favorable market conditions.

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2026-05-15 19:17