Exodus Motion has announced plans to accumulate W3C Corp for $175 million, utilizing its Bitcoin holdings as collateral to finance the deal. The transaction will convey cost infrastructure firms Monavate and Baanx underneath the management of the crypto pockets supplier.
The NYSE-listed firm revealed the settlement on Monday. The acquisition represents a strategic pivot towards built-in cost options. Exodus goals to ascertain itself as one of many few self-custodial pockets suppliers that controls your entire cost infrastructure chain.
CEO JP Richardson said the transfer would get rid of the hole between cryptocurrency storage and spending. The corporate expects to turn into a complete monetary platform for customers managing digital belongings.
Strategic Integration of Fee Infrastructure
The acquisition will grant Exodus direct entry to card issuance, cost processing, and compliance capabilities. The corporate plans to embed these instruments inside its shopper and enterprise product strains. This integration will cut back dependence on exterior service suppliers.
Exodus expects to develop assist for further digital belongings after the deal closes. The corporate particularly highlighted plans to accommodate main cost stablecoins. The transaction additionally positions Exodus to subject playing cards by means of Visa, Mastercard, and Uncover networks.
The cost infrastructure will join instantly with XO Swap, the corporate’s onchain alternate aggregator. This integration will allow programmable payouts and streamlined card issuance for customers.
Financing Construction and Timeline
Exodus will fund the acquisition by means of current money reserves and a credit score facility with Galaxy Digital. The mortgage is secured towards the corporate’s Bitcoin treasury. The association permits Exodus to take care of its cryptocurrency holdings whereas accessing vital capital.
The corporate has already supplied $58.8 million in loans to W3C Corp. These funds assist W3C’s acquisition of Monavate and Baanx. Exodus could lengthen as much as $10 million in further working capital if wanted.
The transaction is predicted to shut someday in 2026. Regulatory approvals and customary closing circumstances have to be happy earlier than finalization.
Chief Monetary Officer James Gernetzke emphasised the income potential from the acquisition. He famous that interchange charges, processing costs, and program charges would kind a core part of the corporate’s transaction companies enterprise mannequin.
