Bitcoin wallet firm Exodus is expanding its focus to the full crypto payments stack and has sold $87 million in BTC, a move that could diversify its revenue streams beyond wallet services.

Exodus sold 63% of its Bitcoin holdings to buy a fintech company—but the target company refused to close the deal. A company used by millions to store Bitcoin made the decision to sell over $1,000 worth of its own Bitcoin reserves in a single quarter. This story is more complex than just a loss figure. Exodus Movement (NYSE American ticker: EXOD), founded in 2015, owns a self-custody crypto wallet—where users hold their own private keys without relying on centralized intermediaries—with over 1.5 million monthly active users worldwide. So why did a company symbolizing “self-custody of crypto” end up selling nearly all of its Bitcoin? 1) November 2025: Exodus signed an agreement to acquire W3C Corp, the holding company controlling Monavate (payment infrastructure) and Baanx (crypto fintech platform), for $175 million. The goal: expand from a simple wallet into a full-cycle crypto payment platform. 2) End of 2025: The company borrowed funds from Galaxy Digital to pay the first installment of the deal and rushed to repay the debt before year-end. Bitcoin reserves dropped for the first time, leaving only 1,704 BTC. 3) Q1 2026 (Jan–Mar): Exodus sold another 1,076 BTC along with other digital assets, raising $73.2 million (~2.37 billion THB). Bitcoin reserves fell to just 628 BTC—a 63% decline from the start of the year. 4) April 8, 2026: Exodus received regulatory approval from the UK’s Financial Conduct Authority to close the deal—but W3C Corp refused to proceed with the transaction. 5) April 2026: Exodus filed a lawsuit against W3C Corp and its CEO, Garth Howat, in the Delaware Court of Chancery, seeking to enforce the contract. Exodus CEO JP Richardson stated briefly: “We have a binding agreement and expect full performance.” 6) May 1, 2026: The deal finally closed. Exodus acquired Monavate and Baanx, and launched Exodus Pay—a crypto payment service available across all 50 U.S. states. 7) May 11–12, 2026: Q1 2026 financial results were released: net loss of $32.1 million (~1.04 billion THB), more than double the prior year’s loss. Revenue plunged 36.8% to $22.7 million. The market responded by selling off EXOD shares by 5.75% to $7.71, with further declines of 3.11% before market open. This case highlights the risks many crypto companies face when using digital assets as capital for business expansion. Bitcoin’s price dropped 23% in Q1, while Solana fell over 34%, causing operational losses to balloon. Cash on hand surged from $5.2 million to $74.4 million, suggesting strong short-term liquidity—but the cost was over a thousand Bitcoin sold during a period when prices had not yet recovered. EXOD shares have fallen 86% over the past 12 months. Analysts at BTIG, Benchmark, and Northland still maintain positive ratings on EXOD stock—but all have significantly lowered their price targets. BTIG reduced its target from $40 to $20; Benchmark cut its target from $42 to $21. The crypto community on X is divided on this issue (the views below are synthesized from widespread opinions, not direct quotes from any single post).Some have commented on this: “A company that builds wallets for people to store Bitcoin but sells its own Bitcoin—this is the most painful irony of the year. If you don’t even hold it yourself, why should anyone trust the platform?” Another group argues: “If the W3C deal actually works and Exodus becomes a global crypto payment infrastructure, this Bitcoin sale might just be trading chips for a much bigger stake.” The W3C deal has closed, but the real work has only just begun. Exodus must prove in Q2/2026 whether this acquisition will start generating real revenue—or simply exchange high-quality Bitcoin for a heavier new burden. The information in this post is for news reporting purposes only and does not constitute investment advice. Please conduct your own research and make decisions independently. #Exodus #EXOD #Bitcoin #CryptoWallet

EXODUS BOOSTS PAYMENTS PUSH, SELLS $87M IN BTC

EXODUS SELLS 1,076 BITCOIN IN Q1 TO FUND PAYMENTS ACQUISITION AS REVENUE FALLS 37% Exodus Movement sold 1,076 bitcoin during the first quarter of 2026, cutting its BTC holdings by 63% from 1,704 to 628, as the crypto wallet company liquidated its Bitcoin treasury to fund the acquisition of W3C Corp., the holding company behind fintech firms Monavate and Baanx. Total crypto sold in Q1 reached $73.2 million while purchases totaled $962,000. The company set aside more than $70 million in dollar reserves for W3C closing obligations. Cash, cash equivalents, and stablecoins on the balance sheet rose from $5.2 million to $74.4 million by March 31. Exodus closed the Monavate and Baanx acquisitions on May 1. Q1 revenue fell 36.8% year-over-year to $22.7 million, driven by a 40.8% drop in exchange aggregation revenue as user trading volumes declined. The company reported a net loss of $32.1 million, up from $12.9 million in Q1 2025. The digital asset portfolio produced a net loss of $36.4 million, reflecting $76.8 million in unrealized losses partly offset by $40.4 million in realized gains from crypto sales. Monthly active users dipped to 1.5 million from 1.6 million a year ago, while quarterly funded users fell 22.2% to 1.4 million. Exodus added 5,068 Solana during the quarter, bringing SOL holdings to 17,541 tokens, as the company rotated its treasury toward stablecoins and cash ahead of the acquisition close. The EXOD stock fell more than 5% on the day of the results. The W3C acquisition adds card issuing and payment infrastructure to Exodus’s self-custody wallet business, extending the company’s strategy of building regulated crypto payment infrastructure on top of its core wallet product.

Exodus sold 1,000 Bitcoin, or $73.2 million, to boost its cash and stablecoin reserves from $5.2 million to $74.4 million, financing its strategic shift into a payments company.

Exodus (EXOD) sold 1,076 BTC & increased SOL holdings in Q1 2026. Total crypto sales: $73.2M. Cash/stablecoins surged to $74.4M for acquisition payments. Revenue down 36.8% YoY to $22.7M; net loss $32.1M, including $36.4M unrealized crypto losses. Reported by CoinDesk.

Small update on Xeet. Crossed 40k Xeets, sold a few floor cards and accumulated more MegaETH creator related cards going into the first campaign. Sent a few of the Wale cards I bought on secondary to supporters. Invested low four figs overall, hope this will give good exposure and Xeet doesn't dilute Xeets or cards too much