Key Takeaways
Exodus Movement Inc. acquired payments infrastructure firms Monavate and Baanx for $76.3 million, a strategic move to own its payment rails and reduce dependence on crypto trading revenue after a 22 percent quarterly drop in exchange volume.
"This is a turning point for Exodus. Bringing payments in-house lays the foundation for the next generation of products built on self-custody,” JP Richardson, CEO and Co-Founder of Exodus, said in a statement.
The acquisition price of $76,273,333.30 covers the outstanding principal and interest on a loan to the firms' former parent, W3C Corp. The deal gives Exodus regulated card issuing and processing infrastructure. The move follows preliminary Q1 2026 results showing revenue fell to $22.7 million from $36.0 million a year earlier, while exchange volume declined to $1.18 billion.
By owning the payments stack, Exodus aims to capture more revenue from transactions through its new Exodus Pay app, which is now live in all 50 US states. The company can now issue cards on the Visa and Mastercard networks, creating new income from interchange, processing fees, and float to offset the volatility of its core crypto exchange business.
The acquisition of Monavate and Baanx gives Exodus direct control over issuing, processing, and regulatory capabilities, a shift from its prior role as a client of these services. The two firms provide the underlying infrastructure for other crypto players like Ledger and MetaMask.
This vertical integration is central to the company's strategy to build a durable, diversified platform less correlated to crypto market cycles. Chief Financial Officer James Gernetzke noted the tight correlation between trading revenue and Bitcoin's price is a ceiling the company needs to break. With the new assets, Exodus captures "owner economics" on each step of a transaction, from its self-custodial wallet to the final card payment.
The deal concludes a complex process that began with an agreement to acquire parent company W3C Corp in 2025. Exodus later enforced a secured loan against the group in a UK receivership, leading to the direct purchase of the Monavate and Baanx shares from the appointed receivers.
This article is for informational purposes only and does not constitute investment advice.
