Exodus wallet dumps bitcoin for payments push

Exodus wallet sold 1,076 bitcoin in Q1 2026 to fund its $175 million acquisition of W3C’s payments business.

Exodus Movement (NYSE: EXOD), developer of the self-custody Exodus wallet, sold 1,076 bitcoin during Q1 2026, reducing its BTC holdings from 1,704 to 628 coins and cutting the treasury’s value from $149.2 million to $42.8 million. The company also added 5,068 Solana tokens over the same period.

In total, Exodus sold $73.2 million in cryptocurrency during the quarter while buying just $962,000. “During Q1 2026, the Company has continued to sell digital assets to prepare for the next disbursement related to the W3C closing, and has set aside over $70 million in US dollar reserves for these obligations,” the quarterly filing states. Cash, equivalents, and stablecoins rose to $74.4 million from $5.2 million at year-end.

What the W3C deal delivers for Exodus

Exodus closed its acquisition of Monavate and Baanx on May 1, the two payments subsidiaries of W3C Corp, for a total of $175 million. The deal adds card-issuing and payments infrastructure directly into Exodus’s self-custody wallet stack. Baanx provides crypto debit card infrastructure and Monavate handles card programme management.

The strategy follows Exodus’s earlier announcement of a fully reserved dollar-backed stablecoin built with MoonPay and M0, which will underpin the Exodus Pay feature inside the app.

XO Cash, a Solana-based stablecoin toolkit built with MoonPay, is already live and lets AI agents spend money through Visa rails without exposing users’ private keys.

Q1 revenue fell 36.8% to $22.7 million from $36 million a year earlier. Exchange aggregation, the company’s main revenue line, dropped $13.8 million as user trading volumes dried up.

The net loss widened to $32.1 million from $12.9 million, partly driven by a $36.4 million loss on crypto holdings as bitcoin fell 23% and Solana dropped more than 34% over the quarter.

What the pivot means for Exodus’s positioning

Exodus is the only publicly traded self-custody wallet provider actively building a full payments stack. Monthly active users dipped to 1.5 million from 1.6 million a year earlier, while quarterly funded users fell 22.2% to 1.4 million. EXOD stock has fallen 86% over the past 12 months and was trading near $7.71 at the time of the Q1 filing.

The company is repositioning itself as a crypto-native payments platform rather than a pure wallet provider. The XO Cash and Exodus Pay suite, combined with the Monavate and Baanx infrastructure, could give Exodus a direct competitor path against traditional fintech stablecoin offerings from firms like MoonPay and PayPal’s PYUSD in the consumer payments market.