Exodus Leverages Bitcoin Holdings for $175 Million Move into Onchain Payments

Exodus, a crypto wallet provider, has announced a significant strategic shift by utilizing its Bitcoin reserves to facilitate an ambitious $175 million acquisition of W3C Corp, the parent company of payment infrastructure providers Monavate and Baanx. This move aims to enhance its capabilities in onchain payments.

Key Takeaways

Exodus plans a $175 million acquisition of W3C Corp to strengthen its onchain payment infrastructure.
The strategy is focused on becoming a self-custodial wallet that covers the entire payments stack.
The company will finance the deal using cash reserves and a loan against its Bitcoin holdings.
This acquisition will allow Exodus to streamline its services and issue cards through major networks like Visa and Mastercard.

Exodus taps Bitcoin holdings to fund $175M move into onchain payments

Exodus Utilizes Bitcoin Holdings to Fund Acquisition

To fund the $175 million deal, Exodus will utilize its cash reserves and draw on a credit facility from Galaxy Digital, secured by the company’s Bitcoin assets. As part of this acquisition, Exodus has already loaned $58.8 million to W3C to aid in the purchase of Monavate and Baanx and may provide an additional $10 million for working capital. The deal's closure is anticipated in 2026.

James Gernetzke, the chief financial officer of Exodus, stated, “The economics from interchange, processing, and program fees are expected to become a foundational part of our payments and transaction services business.” Additionally, XO Swap, Exodus’s onchain exchange aggregator, will gain access to Monavate and Baanx’s tools for programmable payouts and streamlined card issuance. This announcement follows Exodus's recent acquisition of Grateful, a stablecoin payments startup based in LATAM.

Exodus shares gained 3.6% on Monday. Source: Google Finance

The Rise of Crypto Payment Railways

Exodus's decision to acquire W3C aligns with the trend of major payment networks embracing stablecoins and blockchain-based settlement solutions. In September, Visa started piloting a new system allowing banks and financial institutions to pre-fund cross-border payments with USDC and EURC, facilitating quicker global transfers.

This effort follows Swift's announcement of a collaboration with Ethereum developer Consensys and over 30 financial institutions to create a blockchain-based settlement platform aimed at delivering real-time cross-border payments around the clock.

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Looking Ahead

This strategic acquisition positions Exodus to become a key player in the crypto payments landscape, potentially transforming how users engage with their digital assets and manage their transactions effectively. With a focus on integrating comprehensive payment solutions, Exodus is set to enhance its platform's versatility and user appeal.

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