Exodus Seeks to Steady Income During Crypto Market Fluctuations by Expanding into Fintech

Exodus Movement Inc. Embarks on Major Expansion in Crypto and Fintech

Exodus Movement Inc. (EXOD) is making significant strides to strengthen its presence in the cryptocurrency and financial technology industries. The company recently announced a $175 million acquisition of W3C Corp., which brings card issuer Baanx and payment processor Monavate under its umbrella.

This acquisition marks a major turning point for Exodus, signaling its ambition to evolve into a comprehensive crypto payments platform. According to a report from Benchmark, this is the company’s most significant transformation to date. The integration of Monavate’s and Baanx’s regulated infrastructure will allow Exodus to provide a full suite of services, ranging from self-custody wallets to card issuance and payment processing. This strategic move is designed to diversify revenue sources and reduce the company’s dependence on the unpredictable nature of wallet and swap transactions.

Building on its previous acquisition of Grateful—a stablecoin payments startup focused on Latin America—Exodus has already expanded its payment capabilities for both merchants and consumers. With Monavate having issued 5 million cards to date, the combined platform has the potential to scale up to 50 million cards, greatly increasing transaction volumes. This expansion is expected to generate consistent income through interchange fees, recurring card issuance, and processing margins. Benchmark analysts estimate that the newly acquired businesses could add $35–$40 million in revenue next year, with gross margins between 45% and 55%, offering a more stable financial outlook compared to Exodus’s current reliance on crypto market trends.

Responding to the Surge in Stablecoin Payments

Exodus’s move into regulated payment infrastructure comes amid a sharp rise in demand for stablecoin transactions. Between February and August 2025, stablecoin payment volumes jumped by 70%, with business-to-business transactions making up nearly two-thirds of this growth. By leveraging Monavate’s technology, Exodus can now issue cards on major networks such as Visa and Mastercard, enabling the company to expand its reach across the U.S., UK, and EU. CEO JP Richardson highlighted that integrating card and payment solutions will help bridge the gap between storing and spending crypto, furthering Exodus’s mission to make digital assets usable in everyday life.

Financial Strategy and Market Outlook

The acquisition is being financed through a mix of cash and a bitcoin-backed credit facility from Galaxy Digital, demonstrating Exodus’s ongoing use of its crypto assets to support growth. Despite the company’s shares currently trading at a 14-month low, Benchmark has reaffirmed a $42 price target and a “Buy” recommendation, based on projected EBITDA for 2026. While Exodus’s shift toward more stable, fintech-style revenue streams could improve its long-term prospects, the company still faces challenges related to regulatory changes and the inherent volatility of the cryptocurrency market.