Crypto Firm Exodus Drains 63% Of Its Bitcoin Reserves As Q1 Loss Doubled Year Over Year

Exodus Movement sold more than 1,000 Bitcoin in the first three months of 2026 to fund a push into financial technology, raising $73 million in the process.

The crypto wallet company cut its Bitcoin holdings from 1,704 to 628 coins by March 31 — a reduction of roughly 63% — with nearly all the proceeds directed toward acquiring W3C Corp., the parent company of fintech firms Monavate and Baanx.

The Bitcoin sales came as Exodus reported a steep drop in earnings. Total revenue for the quarter ended March 31 fell to $22.7 million, down from $36 million during the same period a year ago — a decline of nearly 37%.

Exchange aggregation, which accounts for the bulk of company income, took the hardest hit, falling almost $14 million as user trading activity slowed significantly.

Monthly active users slipped from 1.6 million to 1.5 million year over year. Quarterly funded users dropped even more sharply, falling 22% to 1.4 million from 1.8 million.

Exodus pointed to macroeconomic pressures — including revised Federal Reserve growth projections 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 coming quarters.

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 on 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 close of 2025.

Even as the core business contracted, Exodus rolled out 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.

Featured image from Getty Images/GeorgeManga, chart from TradingView