Exodus Movement has announced plans to acquire W3C Corp for $175 million, using its Bitcoin holdings as collateral to finance the deal. The transaction will bring payment infrastructure companies Monavate and Baanx under the control of the crypto wallet provider.
The NYSE-listed company revealed the agreement on Monday. The acquisition represents a strategic pivot toward integrated payment solutions. Exodus aims to establish itself as one of the few self-custodial wallet providers that controls the entire payment infrastructure chain.
CEO JP Richardson stated the move would eliminate the gap between cryptocurrency storage and spending. The company expects to become a comprehensive financial platform for users managing digital assets.
Strategic Integration of Payment Infrastructure
The acquisition will grant Exodus direct access to card issuance, payment processing, and compliance capabilities. The company plans to embed these tools within its consumer and enterprise product lines. This integration will reduce dependence on external service providers.
Exodus expects to expand support for additional digital assets after the deal closes. The company specifically highlighted plans to accommodate major payment stablecoins. The transaction also positions Exodus to issue cards through Visa, Mastercard, and Discover networks.
The payment infrastructure will connect directly with XO Swap, the company’s onchain exchange aggregator. This integration will enable programmable payouts and streamlined card issuance for users.
Financing Structure and Timeline
Exodus will fund the purchase through existing cash reserves and a credit facility with Galaxy Digital. The loan is secured against the company’s Bitcoin treasury. The arrangement allows Exodus to maintain its cryptocurrency holdings while accessing necessary capital.
The company has already provided $58.8 million in loans to W3C Corp. These funds support W3C’s acquisition of Monavate and Baanx. Exodus may extend up to $10 million in additional working capital if needed.
The transaction is expected to close sometime in 2026. Regulatory approvals and standard closing conditions must be satisfied before finalization.
Chief Financial Officer James Gernetzke emphasized the revenue potential from the acquisition. He noted that interchange fees, processing charges, and program fees would form a core component of the company’s transaction services business model.
Source: https://coinpaper.com/12603/exodus-deploys-bitcoin-reserves-for-175-million-payments-infrastructure-acquisition
