Exodus Movement sold over 1,000 Bitcoin in the first three months of 2026 to fund its expansion into financial technology, raising $73 million in the process.
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The crypto wallet company reduced its Bitcoin holdings from 1,704 to 628 coins by March 31 — a drop of about 63% — with nearly all the money going toward buying W3C Corp., the parent company of fintech firms Monavate and Baanx.
Revenue Takes A Sharp Hit
The Bitcoin sales came as Exodus reported a steep drop in earnings. Total revenue for the quarter ending March 31 fell to $22.7 million, down from $36 million during the same period last year — a decline of nearly 37%. Exchange aggregation, which makes up most of the company’s income, was hit hardest, falling almost $14 million as user trading activity slowed significantly. Monthly active users dropped from 1.6 million to 1.5 million year over year. Quarterly funded users fell even more sharply, down 22% to 1.4 million from 1.8 million.
Exodus pointed to macroeconomic pressures — including revised Federal Reserve growth forecasts and uncertainty around tariff policy — as contributing factors. The company also warned that price swings in digital assets could continue to affect its results in the coming quarters.
Net Loss More Than Doubled
The financial results reflected more than just a drop in trading. Exodus posted a net loss of $32 million for the quarter, compared to a nearly $13 million loss in Q1 2025. The company’s broader digital asset portfolio recorded a net loss of $36.4 million, driven by $76.8 million in unrealized losses, though partially offset by $40.4 million in realized gains from asset exchanges.
On the balance sheet, cash and cash equivalents rose sharply. The company ended the quarter with nearly $73 million in cash, up from just $4.9 million at the end of 2025.
New Products In The Pipeline
Even as its core business shrank, Exodus launched a new product. XO Cash, a stablecoin toolkit built on Solana with payments company MoonPay, allows AI agents to make purchases through Visa’s payment network without exposing user private keys.
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Featured image from Getty Images/GeorgeManga, chart from TradingView
Frequently Asked Questions
Here is a list of FAQs based on the news about Exodus and its Bitcoin reserves written in a natural conversational tone
General Beginner Questions
Q What happened with Exodus and its Bitcoin
A Exodus a crypto wallet company used up 63 of its Bitcoin holdings in the first quarter of this year They sold a lot of their Bitcoin to cover operating costs
Q Why did they sell their Bitcoin
A The companys expenses grew much faster than its revenue Specifically their losses doubled compared to last year so they needed cash to keep the business running
Q Is this a big deal for Exodus
A Yes its a significant move It shows the company is burning through cash and relying on its Bitcoin savings to stay afloat It also means they have very little Bitcoin left in reserve
Q Does this affect me if I use the Exodus wallet
A Probably not directly Your personal Bitcoin in the Exodus wallet is yours and stored on the blockchain not with the company However it raises questions about the companys longterm financial health
Advanced Financial Health Questions
Q What exactly does using up 63 of Bitcoin reserves mean
A It means that at the start of the year Exodus had a certain amount of Bitcoin on its balance sheet By the end of the first quarter they had sold or spent 63 of that amount They now have only 37 of their original Bitcoin stash left
Q Why is selling Bitcoin a problem Its just an asset right
A For a crypto company holding Bitcoin is often seen as a sign of strength and a bet on the future Selling it to pay bills suggests the company isnt generating enough profit from its actual business to cover its costs
Q What caused their firstquarter loss to double
A The company likely spent more on salaries marketing or development while not bringing in enough revenue from its products The specific reasons are in their financial report but it points to a mismatch between spending and income
Q If they sold most of their Bitcoin does that mean they are going bankrupt