Glasgow-based Beeks Financial Cloud Group plc, a cloud computing and connectivity provider for financial markets, announced that it signed a “significant” new Exchange Cloud contract with Kraken, a cryptocurrency exchange in San Francisco.
Beeks also announced unaudited results for the six months ended December 31, 2024, showing first-half revenues increased 22% to £15.79 million and underlying profit before tax rose 37% to £1.89 million.
“With Exchange Cloud already delivering results in the Tier 1 equity exchanges space, this collaboration marks the first cryptocurrency exchange partnership for Beeks,” said the Glasgow firm.
“Together with Kraken, Beeks will offer low-latency, institutional-grade infrastructure from Kraken’s European data centre. Kraken will rent cloud compute from Beeks’ Exchange Cloud offering under the terms of the partnership.
“The crypto exchange market continues to expand, driven by the growing demand for digital assets. With over 500 cryptocurrency exchanges globally with clients that value high-speed trading, this partnership offers exposure to a broad, new customer base where there is significant scope for Beeks to scale.
“This partnership is a revenue share deal, which brings various commercial benefits including shortened sales cycles and higher profitability; revenue recognition is set to commence in H2 FY25.
“With Kraken’s large customer base of around 13 million clients, this partnership offers significant opportunity to drive revenue growth. This latest win marks another significant customer to have signed up to Exchange Cloud.”
Shannon Kurtas, Head of Trading at Kraken, said: “Kraken has spent over a decade continuously enhancing our infrastructure and technology, but we recognise that many of our clients require ultra-low latency for their trading strategies.
“By working with Beeks Exchange Cloud, we’re ensuring that clients who need high-speed execution can optimise their trading strategies while benefiting from the security and reliability of Kraken.”
Gordon McArthur, CEO at Beeks, commented: “This partnership is a significant milestone for us as it marks the first step into the crypto platform space.
“We are proud to support Kraken and its clients and are looking forward to working alongside them to continue innovating the trading landscape in crypto markets.”
On the first-half results, McArthur said: “We have once again successfully delivered double-digit growth and increasing profit margins as we grow and scale with some of the largest financial organisations globally. Our unique proposition has the potential to transform the future of cloud technology in capital markets.
“The regular flow of new contracts and the conversations currently taking place with Tier 1 organisations around the world reflects the value of our offering and provides us with confidence in continued strong uptake throughout H2 and beyond.”