Exodus sells $87 million of Bitcoin to fund payments expansion

Exodus Movement sold 1,076 Bitcoin—about $87 million—to finance its payments‑stack acquisitions, leaving the treasury at 628 BTC by the end of Q1 2026 [3]. The proceeds funded the May 1 purchase of UK‑based card‑issuing firms Monavate and Baanx, giving the self‑custodial wallet owner control over the entire payment rail [1].

The company, which listed on NYSE American in January after a failed NYSE debut in May 2024, is repurposing its core wallet into a payments platform called Exodus Pay. The new service lets users spend USD‑backed stablecoins, Bitcoin and other assets anywhere Visa or Apple Pay is accepted, while keeping private keys on the user’s device [2]. By owning the card‑issuing and processing infrastructure—thanks to Monavate and Baanx’s Visa/MasterCard sponsorship and fraud systems—Exodus can capture interchange fees, processing income and float interest that previously went to third‑party providers [1].

The balance‑sheet shift is stark. Cash and cash equivalents jumped from under $5 million at the end of 2025 to nearly $73 million after the Bitcoin liquidation, while the Bitcoin holding fell from 1,704 BTC to 628 BTC, a 63 % reduction [2][3]. Revenue also slid, with Q1 2026 earnings down 36 % to $22.7 million and a net loss widening to $32.1 million, reflecting weaker retail crypto trading and a $36.4 million loss on digital assets [3]. Yet monthly active users held steady at about 1.5 million, suggesting the user base remains engaged despite the revenue dip [1].

Exodus’s leadership frames the move as a strategic break from a trading‑centric model that peaked in 2025 with $121.6 million revenue and $11 million adjusted EBITDA. By integrating payments, stablecoin issuance and card programs into a single app, the firm hopes to decouple future earnings from Bitcoin’s price swings and capture “owner economics” on each transaction layer [1]. The company also launched XO Cash, a dollar‑backed stablecoin it claims is the first built for AI agents, hinting at longer‑term ambitions in autonomous finance [2].

If the payments stack can generate sustainable fee income, Exodus could transform from a niche wallet provider into a broader fintech player. The open question is whether the new revenue streams will offset the sharp decline in trading volume and whether the company can maintain its self‑custody promise while scaling card‑issuing operations.