Exodus Leverages Bitcoin Reserves for $175 Million Acquisition in Onchain Payment Solutions
Exodus is investing its Bitcoin assets to finance a $175 million deal for W3C Corp, intending to enhance its onchain payment services.
Exodus, a cryptocurrency wallet provider, is strategically utilizing its Bitcoin reserves to finance a significant acquisition, valued at $175 million, for W3C Corp. This move will integrate Monavate and Baanx into its operations, aiming to enhance Exodus’s entrance into onchain payment solutions.
The announcement made on Monday is poised to alter the company’s trajectory. By absorbing Monavate and Baanx, Exodus seeks to be among the select self-custodial wallets managing the complete payments architecture—from cryptocurrency storage to card issuance.
Quote from JP Richardson:
“By bringing card and payments infrastructure in-house, we are closing the gap between holding and spending, and positioning Exodus as the only platform you need for your money.”
The strategy includes incorporating issuance, processing, and compliance tools directly into its offerings, diminishing the need for external vendors while expanding support for a wider array of assets, notably major payment stablecoins. The company anticipates that it will be able to issue cards through Visa, Mastercard, and Discover.
Exodus shares gained 3.6% on Monday.
Source: Google Finance
To fund the $175 million transaction, Exodus will tap into its reserves and draw from its credit arrangement with Galaxy Digital, securing a loan against its Bitcoin holdings. As part of this arrangement, Exodus has already lent $58.8 million to W3C for the combined acquisition of Monavate and Baanx, with a potential additional $10 million for operational expenses. The deal is expected to close in 2026.
Quote from James Gernetzke:
“The economics from interchange, processing, and program fees are expected to become a foundational part of our payments and transaction services business.”
In conjunction with this agreement, Exodus’s onchain exchange aggregator, XO Swap, will gain essential tools from Monavate and Baanx for programmable payouts and card issuance. This announcement follows Exodus’s recent acquisition of Grateful, a Latin American-based stablecoin payment startup.
Exodus’s initiative to acquire W3C comes at a time when leading payment networks are increasingly adopting stablecoins and blockchain for settlements. In September, Visa started piloting a system allowing banks to pre-fund cross-border payments using USDC and EURC to expedite global transfers. Concurrently, Swift revealed its collaboration with Ethereum developers and over thirty financial institutions to establish a blockchain-based system for 24/7 cross-border payments.
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