CoinDesk
Payward, the parent of crypto exchange Kraken, is cutting roughly 150 jobs — about 5% of its roughly 3,000-person workforce — as part of an optimization push ahead of a planned public listing, according to people familiar with the matter. The company is simultaneously raising fresh capital at a $20 billion valuation while accelerating an acquisition strategy that has already swallowed more than $2.6 billion in disclosed deals over the past year.
Payward confidentially filed a draft S-1 with the SEC on November 19, taking the formal first step toward an IPO, then paused the timeline in March after market conditions soured. At Consensus Miami earlier this year, co-CEO Arjun Sethi said the exchange is "80% ready" to go public and still intends to list once conditions improve. A Kraken spokesperson declined to comment on specific personnel decisions, pointing to a "high performance culture" and ongoing organizational review.
Why it matters
The layoffs land against a backdrop of capital intensity, not distress. Payward is raising at a $20 billion valuation — a step up from prior private rounds — while actively absorbing targets: stablecoin payments firm Reap for $600 million, derivatives platform Bitnomial for $550 million, and the $1.5 billion NinjaTrader deal in 2025, its largest to date. Cutting 5% of headcount while fronting fresh capital signals a company choosing to right-size its cost base before it has to disclose margins to public-market investors, not one bracing for a downturn.
The S-1 has been live since November. A confidential filing buys Payward time to update disclosures privately with the SEC staff, but it also starts a clock: once the document goes public, the company will face quarterly scrutiny on revenue mix, custody exposure, and the contribution of newly acquired subsidiaries. The next reads will be whether the headcount trim is the only cost action and whether the $20 billion round closes at that mark or reprices.
Frequently asked questions
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Why is Kraken parent Payward laying off 150 employees right now?
The cuts are part of an optimization push ahead of a planned public listing, according to sources familiar. Payward is also raising fresh capital at a $20 billion valuation while pursuing acquisitions — the headcount trim signals a company right-sizing its cost base before disclosing margins to public-market…
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What is Payward's valuation in the new funding round?
Payward is raising fresh capital at a $20 billion valuation, according to people with knowledge of the matter. The round is happening alongside an active M&A push and a confidential S-1 filing with the SEC that dates back to November.
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Has Kraken filed for an IPO?
Yes — Payward confidentially filed a draft S-1 registration statement with the SEC on November 19, the formal first step toward a public listing. The company paused its IPO timeline in March after market conditions weakened but still intends to list once conditions improve.
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What acquisitions has Payward made recently?
Payward has disclosed more than $2.6 billion in deals over the past year: stablecoin payments firm Reap for $600 million, digital asset derivatives platform Bitnomial for $550 million, and its largest deal, U.S. retail futures platform NinjaTrader, for $1.5 billion in 2025.
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How does Payward's $20B valuation compare to other public crypto exchanges?
A $20 billion private valuation would place Kraken above Gemini's current public market cap and below Coinbase's. Gemini, already public, traded up more than 25% pre-market after reporting Q1 revenue of $50.3 million, up 42% year-over-year, giving a recent comparable read on how US-regulated crypto venues are being…
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