Exodus Movement unloaded more than 1,000 Bitcoin in the first quarter of 2026, cutting its holdings by 63% to raise $73 million. Nearly all of that cash went toward acquiring W3C Corp., the parent company of fintech firms Monavate and Baanx. The move comes as Exodus faces a steep revenue decline and widening losses.
Why Exodus sold the Bitcoin
The sale reduced Exodus's Bitcoin stash from 1,704 to 628. The $73 million raised was used almost entirely to buy W3C Corp., a holding company that owns Monavate and Baanx — both players in the payments and card-issuing space. Exodus's digital asset portfolio recorded a net loss of $36.4 million in Q1, driven by $76.8 million in unrealized losses that were partially offset by $40.4 million in realized gains. Selling into that market allowed the firm to lock in cash for the acquisition while managing its crypto exposure.
Revenue and user metrics slide
Total revenue for Q1 2026 fell to $22.7 million from $36 million a year earlier — a 37% drop. Exchange aggregation revenue alone declined nearly $14 million as users traded less. Monthly active users slipped from 1.6 million to 1.5 million year-over-year, while quarterly funded users dropped 22% to 1.4 million from 1.8 million. Exodus blamed macroeconomic pressures, including revised Federal Reserve growth projections and tariff policy uncertainty.
Net loss more than doubled to $32 million in Q1, compared to a $13 million loss in the same period last year.
Cash pile grows, new product launches
Despite the losses, Exodus's cash and cash equivalents surged to $73 million from just $4.9 million at the end of 2025. The company also launched XO Cash, a stablecoin toolkit built on Solana in partnership with MoonPay. The product lets AI agents make purchases via Visa without exposing their private keys — a niche play aimed at the growing intersection of crypto and automated payments.
Exodus now holds 628 Bitcoin, down from 1,704 at the start of the year. The company's focus appears to be shifting toward fintech infrastructure through the W3C acquisition, but the steep drop in core revenue leaves questions about user engagement. The next quarterly report will show whether the new toolkit and the acquisition can help reverse the trend.
