Payward Inc., the parent company of crypto exchange Kraken, reported a sharp decline in second quarter earnings as weaker trading activity weighed on the broader crypto exchange industry, according to a shareholder letter seen by Bloomberg.
Adjusted pretax earnings fell 71% to $23 million from $79.7 million a year earlier. 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.
Despite weaker trading volumes, funded accounts increased 42% to a record 6.6 million. The company defines funded accounts as accounts holding a balance greater than zero.
The results come as falling crypto prices and lower spot trading activity pressure exchanges that rely heavily on trading fees. Bitcoin is trading roughly 50% below its October 2025 record high.
