Kraken's parent company, Payward, reported a steep decline in third-quarter earnings as falling cryptocurrency prices curbed trading activity and put pressure on its lending business, according to the company's financial results for the third quarter of 2026. The downturn arrives at a delicate moment for the company, which has yet to list its shares publicly and is working to demonstrate it can stay profitable through a market trough.

Why Payward's earnings fell

Payward generates most of its revenue from fees charged when customers buy and sell crypto. It also lends money to other crypto companies. Falling prices have hurt both parts of the business: reduced trading activity means fewer fees, while the bitcoin that borrowers post as collateral has lost value, making those loans riskier.

The third-quarter figures reflect the slowdown. In a letter to shareholders, Payward reported adjusted EBITDA (a profitability measure that excludes interest, taxes, and similar costs) of $60 million, down 67% from a year earlier. Total trading volume on the platform fell 30% to $353 billion. The company's platform margin — now disclosed in place of adjusted revenue — declined 12% to $487 million.

Not every metric pointed downward. The number of accounts holding funds rose 37% to 7.1 million, and adjusted EBITDA climbed 163% from the second quarter.

Bitcoin rose roughly 40% between mid-August and early October, then gave back those gains as investors grew worried about inflation and the U.S. midterm elections.

Kraken extends terms of Nakamoto loan

The market slump has also forced Kraken to rework a major loan. Nakamoto Inc. (NASDAQ: NAKA), a Nashville-based bitcoin company, still owes 165 million USDT, a dollar-pegged stablecoin, under a facility it obtained from Kraken in June. According to a filing with the U.S. Securities and Exchange Commission (Form 8-K), the two companies agreed to amend the loan terms on November 11.

Under the revised agreement, Nakamoto now has until December 4, 2027, to repay 60 million USDT of that balance — a year later than the previous deadline of December 4, 2026. The remaining 105 million USDT is still due on the original deadline of June 30, 2027. Nakamoto's bitcoin trading positions held at Kraken can now count toward the loan. The filing says this change is intended to protect the company if bitcoin's price falls, giving it more time before it must post additional collateral or repay part of the debt.

This is not the first time Nakamoto has needed assistance. In June, it reportedly sold about $48 million in bitcoin and related investments to reduce its debt. That same month, Kraken partnered with Maple Finance, an on-chain lending protocol, to fund its loans without using its own capital.

Diversification and delayed listing plans

Payward is also seeking to rely less on trading fees. In October, it agreed to acquire Saldo Bank, a bank licensed in Lithuania, in a move designed to secure a European banking license. The company additionally plans to offer tokenized stocks, prediction markets, and perpetual futures (derivative contracts without expiration dates) if U.S. regulators allow it, along with a token of its own.

In September, the venture arm of Nasdaq (NASDAQ: NDAQ) agreed to invest $100 million in Payward, a deal that values the company at $21 billion.

Payward's plan to list its shares may also take longer than expected. Bloomberg has reported that an initial public offering might not happen before next year. In the meantime, the markers worth tracking include the pace of trading-volume recovery, regulatory decisions on the company's planned products, and the Nakamoto loan repayment deadlines now extending into late 2027.