BitMEX sale faltered as buyers balked at founder ownership and shrinking business

Potential buyers, including Exodus, passed on BitMEX amid concerns over founder ownership and its shrinking business, according to a source.

BitMEX sale faltered as buyers balked at founder ownership and shrinking business

Finance

BitMEX sale collapsed as buyers balked at founder ownership and shrinking business

Potential buyers, including Exodus, passed on BitMEX amid concerns over founder ownership and its shrinking business, according to a source familiar.

By

Will Canny

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Edited by

Aoyon Ashraf

,

Cheyenne Ligon

Updated

12 min ago

Published

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BitMEX sale collapsed as buyers balked at founder ownership and shrinking business. (Shutterstock)

Summary

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Reputational baggage, fading growth and founder control combined to drive potential acquirers away, according to a source familiar with the discussions.

The crypto exchange failed to secure a buyer before deciding to wind down operations last month.

BitMEX's declining business made it difficult to justify a growth valuation, the person said.

Before once-popular crypto exchange BitMEX announced plans to wind down operations, it spent two years exploring a sale with multiple prospective buyers including competitor exchanges and payments platform Exodus, but failed to clinch a deal, according to a person familiar with the matter.

The would-be acquirers, the person said, were put off by the company's founder-led ownership structure, its shrinking business, and

lingering reputational issues

.

CoinDesk

reported in early 2025 that investment bank Broadhaven was advising the Seychelles-based company on a sale process.

Although co-founders Arthur Hayes, Ben Delo and Samuel Reed had long since stepped away from the business after

U.S. criminal charges

were brought against them in 2020, one prospective buyer was uncomfortable that they still controlled a large majority of the company, the person said, who spoke on condition of anonymity as the matter is private.

That made negotiations harder because buyers typically want part of the acquisition payout to encourage executives to stay with the company after the deal closes.

The company's deteriorating financial performance compounded these concerns. BitMEX continued to lose market share throughout the sale process as trading activity migrated to larger centralized exchanges and decentralized perpetual futures platforms. This made potential acquirers reluctant to pay the revenue multiple typically reserved for growing businesses, the person said.

Both BitMEX and Exodus did not respond to requests for comment by publication time.

The exchange was

reportedly

seeking a valuation of around $1 billion during the process, although it is unclear whether formal bids were ever submitted.

BitMEX was one of crypto's most influential exchanges, pioneering the perpetual futures contract in 2016 with the launch of its XBTUSD perpetual swap. Unlike traditional futures, perpetuals have no expiry date and instead use a funding-rate mechanism to keep prices aligned with the underlying asset, allowing traders to maintain leveraged long or short positions indefinitely.

The product revolutionized crypto derivatives trading, was rapidly adopted across the industry, and today accounts for the vast majority of crypto derivatives volume on other exchanges such as Binance, Bybit and Hyperliquid.

The company announced on July 24 that it would

wind down operations

following a strategic review by its parent, HDR Global Trading, and immediately halting new account registrations ahead of its planned Sept. 23 closure.

The failed sale stands in contrast to a broader rebound in crypto dealmaking.

As institutional interest has returned and regulatory uncertainty has eased, buyers have pursued acquisitions to expand trading, custody and infrastructure businesses. But unlike many recent targets, BitMEX entered the market with declining market share, lingering legal baggage and an ownership structure that complicated a deal.

Dealmaking has remained active across the digital asset industry in recent months, with SBI Holdings agreeing to acquire Japanese

crypto exchange Bitbank

for $289 million,

Keyrock buying BlockFills'

institutional trading business, and Bullish (BLSH), CoinDesk's owner, agreeing to acquire transfer agent

Equiniti for $4.2 billion

.

There have been 144 announced mergers and acquisitions worth $11.8 billion so far in 2026, up 3.5% from the same period last year, according to advisory firm Architect Partners.

The

exchange is now facing a lawsuit

alleging it withheld traders' collateral and engaged in insider trading. The complaint claims that the co-founders designed the platform to retain customer collateral while transferring excess bitcoin

BTC

$

64,668.91

into BitMEX's insurance fund.

Read more:

The inside story of how a hike in Hong Kong changed crypto trading forever

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