Kraken is Growing Faster Than Coinbase, Yet Its Profits Crashed 71%

Payward, the parent of crypto exchange Kraken, made just $23 million in adjusted pretax profit last quarter. That is 71% less than a year earlier, according to a shareholder letter seen by Bloomberg.

The easy explanation is a crypto slump. The numbers say otherwise. Payward's revenue rose 17% to $508 million while its largest rival got smaller.

Coinbase Shrank, Payward Grew

Coinbase files full accounts with the US Securities and Exchange Commission (SEC) every quarter. Its report for the same three months shows revenue of $1.22 billion. That is down 18% from a year earlier.

So the two exchanges moved in opposite directions. One lost nearly a fifth of its revenue. The other added nearly a fifth. Coinbase also booked a $359 million net loss. Most of that came from the falling value of crypto it holds.

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