Crypto Wallet Firm Exodus Reports $32M Q1 Loss After Liquidating Bitcoin Reserves
The crypto wallet provider Exodus Movement posted a $32.1 million quarterly loss in Q1 2026, liquidated 63% of its Bitcoin treasury to finance its W3C purchase, and experienced a revenue drop of nearly 37% amid declining user activity.
In its first quarter 2026 earnings report, Exodus Movement disclosed a net loss totaling $32.1 million, representing more than a twofold increase from the $12.9 million deficit posted during the corresponding quarter of the previous year. The crypto wallet provider liquidated a substantial portion of its Bitcoin reserves to finance corporate acquisitions.
For the quarter ending March 31, the company's total revenue registered at $22.7 million, representing a 36.8% decline compared to the $36 million generated in the prior-year period, according to Monday's announcement. The company's core revenue stream, exchange aggregation services, accounted for the majority of this downturn, contracting by $13.8 million or 40.8%, as customer trading activity experienced a significant cooldown.
The platform's monthly active user count decreased to 1.5 million from 1.6 million year-over-year, while the number of funded users on a quarterly basis saw a more pronounced decline, falling 22.2% to 1.4 million compared to 1.8 million in the same quarter last year.
According to the company, broader economic headwinds played a central role in the deterioration, specifically pointing to the Federal Reserve's updated economic projections and ambiguity surrounding the current administration's tariff strategies as key factors contributing to market weakness. "The Company expects that volatility in digital asset prices will continue and may result in significant fluctuations in the Company's results of operations in future periods," it added.
Exodus sells 63% of its Bitcoin stash
At the conclusion of December 2025, Exodus maintained a position of 1,704 BTC. However, by the end of March 31, the holdings had been reduced to just 628 BTC, representing an approximately 63% decrease in Bitcoin units. Throughout the quarter, the company generated $73.2 million from these Bitcoin sales, with virtually the entire sum allocated toward financing its acquisition of W3C Corp., the parent entity overseeing fintech companies Monavate and Baanx.
The company's overall digital asset investment portfolio resulted in a net loss of $36.4 million, attributed to $76.8 million in unrealized losses that were partially counterbalanced by $40.4 million in realized gains derived from asset exchanges.
As of the quarter's conclusion, the company reported holding $72.9 million in cash and cash equivalents, marking a substantial increase from the $4.9 million balance recorded at the close of 2025.
On May 12, Exodus shares declined 5.75% to reach $7.71, and continued their downward trajectory with an additional 3.11% drop to $7.47 during pre-market trading activity.
Exodus launches XO Cash in push into AI agents
According to previous coverage by Cointelegraph, Exodus has introduced XO Cash, a stablecoin payment toolkit built on the Solana blockchain in partnership with MoonPay, enabling AI agents to execute transactions through Visa's payment infrastructure while maintaining the security of users' private keys.
The platform enables developers to create agent-associated wallets, establish daily spending limits, define approved merchant categories, and generate virtual debit cards funded through Exodus Pay account balances. Transaction settlement occurs automatically using USDC (USDC) or USDt (USDT) through the backend infrastructure provided by Monavate, with the service operating on a zero-fee basis.