BitMEX Sale Fails Amid Concerns Over Founder Control and Business Decline

The attempted sale of BitMEX fell through as potential buyers, including Exodus, expressed reservations regarding the ownership structure led by the founder and the company's declining business, according to an insider.

Buyers Abandon BitMEX Due to Ownership Issues and Business Decline

According to a source familiar with the situation, the combination of reputational issues, diminishing growth prospects, and founder control deterred interested acquirers from pursuing a deal. The cryptocurrency exchange ultimately decided to cease operations last month after failing to find a buyer.

Before announcing its shutdown, BitMEX spent two years seeking a buyer, engaging with various interested parties, including competitor exchanges and payment platform Exodus. However, no agreement was reached.

Insiders revealed that potential buyers were concerned about the significant control held by the founders, even after co-founders Arthur Hayes, Ben Delo, and Samuel Reed distanced themselves from the firm following U.S. criminal charges in 2020. One buyer was particularly uneasy about the founders retaining a majority stake in the company, complicating negotiations. Typically, buyers prefer part of the acquisition payout to incentivize executives to remain post-acquisition.

Adding to these complications was BitMEX's deteriorating financial situation. The exchange was losing market share as trading activity shifted to larger centralized exchanges and decentralized platforms, making it difficult for potential acquirers to justify paying a premium typically reserved for growing companies.

Neither BitMEX nor Exodus responded to requests for comments at the time of publication.

During the sale discussions, BitMEX reportedly sought a valuation of approximately $1 billion, although it remains unclear if any formal bids were made.

BitMEX was once a key player in the cryptocurrency space, having introduced the perpetual futures contract in 2016 with its XBTUSD perpetual swap. This innovative product, which allows traders to hold leveraged positions indefinitely without expiration dates, transformed crypto derivatives trading and has since dominated the market on platforms like Binance and Bybit.

The company announced on July 24 that it would wind down operations following a strategic review by its parent company, HDR Global Trading, and would stop accepting new account registrations ahead of its planned closure on September 23.

This failed sale contrasts sharply with a broader resurgence in cryptocurrency mergers and acquisitions. As institutional interest grows and regulatory uncertainties diminish, other buyers have actively pursued acquisitions to enhance their trading and custody capabilities. However, unlike many recent targets, BitMEX entered a challenging market characterized by declining market share, unresolved legal issues, and a complex ownership structure.

Recent months have seen continued deal-making within the digital asset sector, with SBI Holdings agreeing to acquire Japanese crypto exchange Bitbank for $289 million, Keyrock purchasing the institutional trading arm of BlockFills, and Bullish, CoinDesk's parent company, set to acquire Equiniti for $4.2 billion.

So far in 2026, there have been 144 announced mergers and acquisitions totaling $11.8 billion, a 3.5% increase compared to the same period last year, according to advisory firm Architect Partners.

Currently, BitMEX faces a lawsuit alleging it withheld traders' collateral and engaged in insider trading. The suit claims the founders structured the platform to retain customer collateral while diverting excess Bitcoin into BitMEX's insurance fund.