Table of Contents
There is more good news for the crypto sector, with many firms in the industry reporting healthy profits and revenue during a record-breaking rally of top tokens.
The outlook points to a more optimistic year with Trump's embrace of the sector.
Blockhead
Kraken, a cryptocurrency exchange with long-term plans to go public, reported a revenue spike of more than 100% during last year's chart-bursting digital asset market surge.
Kraken's trading platform brought in $1.5 billion, compared to $671 million the previous year.
Adjusted earnings before taxes and other items rose to $380 million last year. At the end of the year, the platform had $42.8 billion in assets, and the company reported 2.6 million funded accounts.
"This is what we look at; this is how we hold ourselves accountable," said Arjun Sethi, co-chief executive of the privately-held company.
He added that Kraken will continue to release quarterly financial reports, which will include an expanding set of KPIs.
According to Sethi, disclosing the information "gives us an ability to turn on the lights for when we are ready for the possibility" of an initial public offering.
Sethi, co-founder of investment firm Tribe Capital, became Kraken's co-CEO at the end of last year.
@krakenfx is advancing its core accountability mission today by committing to quarterly financial reporting. Transparency isn’t just a talking point for us; it’s foundational to who we are. Our currency is the trust we’ve built with our clients through this transparency.
— Arjun Sethi (@arjunsethi) January 31, 2025
In…
Arjun Sethi
With the digital asset market soaring and Trump's transition from crypto skepticism to enthusiast, Kraken was one of many crypto businesses publicly backing Donald Trump as he ran for president.
The Biden administration took crypto enforcement measures against Kraken, a cryptocurrency exchange that was formed in 2011.
After facing charges from the US Securities and Exchange Commission (SEC), Kraken ended its US crypto staking goods in 2023 after settling the complaints.
Thursday marked the return of the company's staking service to 39 states.
Blockhead
The firm is still fighting off another SEC action, claiming it acted as a clearing agency, broker-dealer, and exchange without proper registration.
According to a Bloomberg report last year, Kraken was considering a pre-IPO fundraising round in 2024. So far, the company's primary capital has only totalled approximately $27 million.
Sethi said, "We have the optionality to raise money or to raise debt if we want to do that."
He added, "All of the options of access to capital are available to us, regardless of whether we are private or public."
In line with the growing euphoria for the digital industry, which is showing profitability returning, Coinbase Global, the largest cryptocurrency exchange in the United States, reportedly generated about $6 billion in revenue last year, based on Bloomberg's average estimate of polled analysts.
The firm, which went public in 2021, will disclose its results for 2024 on February 13.
Tether's Fabulous 2024
Stablecoin issuer Tether Holdings, which came under scrutiny last week during the confirmation hearing for Donald Trump's nominee to head the Commerce Department, announced record-breaking profits of $13 billion.
Analysts and authorities in the cryptocurrency sector have long voiced their disapproval of privately held Tether's lack of transparency, which stems from the company's refusal to release audited financial reports.
BDO, an independent party, verifies the company's quarterly data.
Despite having a small management team, Tether has the potential to become just as profitable, if not more, than the biggest Wall Street investment banks, with last year's profits of $13 billion.
With sales of $53.5 billion, Goldman Sachs Group's net income was $14.3 billion in 2024.
The attestations relate to a certain point in time and don't reveal anything about the organization's financial health.
Like Tether's USDT token, stablecoins are subject to closer scrutiny from regulators who are worried about the operators' reserves' liquidity and their ability to withstand market forces and large-scale redemption requests.
Due to the persistently high demand for stablecoins throughout the crypto bull market, Tether's USDT token has a market valuation of more than $143 billion.
According to a statement released on Friday by the company, Tether issued almost $23 billion in USDT in the three months ending December 31.
The company boasted that it possesses over $7 billion in surplus reserves.
Trump's endorsement is also boosting stablecoins.
Trump bars CBDCs, backs dollar-pegged stablecoins to secure US dominance, aligning government with firms like Tether and Circle for global crypto leadership
Blockhead
A stablecoin is one cryptocurrency that aims to keep its value pegged to fiat currencies like the dollar. Assets that can be quickly converted into cash or other liquid forms usually back them up.
With a total of $113 billion in direct and indirect holdings, Tether increased its exposure to Treasuries in the preceding quarter. Tether receives interest income from Cantor-managed Treasury notes, which comprise most of the reserves backing its stablecoins.
In January, the firm moved its corporate body to El Salvador, and Tether International S.A. De C.V. became the only issuer of USDT.
Elsewhere
Blockhead
Blockhead
Blockhead
Blockhead
Blockhead
Events
Consensus (Hong Kong, 18-20 February)
Consensus is heading to Hong Kong, bringing together the industry’s most important voices from East and West for pivotal conversations and deal-making opportunities.
Consensus Hong Kong convenes global leaders in tech and finance to debate pressing issues, announce key developments and deals, and share their visions for the future.
Use promo code BLOCKDESK20 at checkout for a 20% discount on tickets here.
It's All Happening on LinkedIn
Did you know you can now receive Blockhead's juicy daily newsletters directly to your LinkedIn? Subscribe to our LinkedIn newsletters for the latest news and insights in the world of Web3. There also might be the occasional discount code for the industry's hottest events, exclusively for subscribers!
