BitMEX sale collapsed as buyers balked at founder ownership and shrinking business
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
BitMEX's planned sale collapsed after potential buyers were deterred by the founders' continued ownership, the exchange's shrinking business, and ongoing reputational issues. Despite exploring a sale for two years with several prospective buyers, including competitor exchanges and payments platform Exodus, no deal was reached. Following the failed sale, BitMEX announced it would wind down operations, with a planned closure date of September 23, 2026.
Why it matters
This development highlights challenges in the crypto industry related to reputational baggage and ownership structures impacting M&A activity. BitMEX's failure to sell comes amid a broader rebound in crypto acquisitions, where buyers have shown eagerness to expand trading, custody, and infrastructure businesses. The stalled deal underscores how declining market share and legal issues can complicate transactions even in a recovering market.
Key context
BitMEX pioneered the perpetual futures contract in 2016, a product that revolutionized crypto derivatives trading and is now widely adopted across the industry. However, since 2020 and the U.S. criminal charges against its co-founders, the exchange’s business has declined and trading activity has shifted to larger centralized and decentralized exchanges. The exchange was reportedly seeking a valuation around $1 billion during the sale process. BitMEX’s parent company is HDR Global Trading.
Key numbers and entities
Key parties include BitMEX; its co-founders Arthur Hayes, Ben Delo, and Samuel Reed; potential buyers including competitor exchanges and Exodus; investment bank Broadhaven, which advised on the sale; and HDR Global Trading, BitMEX's parent. The exchange reportedly sought a $1 billion valuation. There have been 144 announced crypto mergers and acquisitions worth $11.8 billion so far in 2026 industry-wide.
What remains unclear
It remains unclear whether any formal bids were ever submitted during the sale process. The source does not confirm details about the specific reasons buyers were unwilling to proceed beyond general concerns about founder control and the shrinking business. Additionally, no official comments were received from BitMEX or Exodus regarding the failed sale.