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BitMEX sale collapses amid concerns over founder control and decline
Potential buyers, including Exodus, reportedly stayed away as BitMEX struggled to retain market share and justify a growth-style valuation.
CoinDesk reports that BitMEX failed to find a buyer before deciding to wind down operations last month, as prospective acquirers grew concerned about the exchange’s founder-led ownership structure and its shrinking business.
According to a source familiar with the discussions, the sale process faced added friction because founder control complicated typical deal terms, where buyers often want part of the acquisition payout tied to retention of executives after a transaction closes.
The outlet also cites concerns over BitMEX’s deteriorating financial performance and lingering reputational issues connected to the company, noting that co-founders Arthur Hayes, Ben Delo, and Samuel Reed stepped away after U.S. criminal charges in 2020, though at least one buyer remained uncomfortable they still controlled a large majority of the company.
CoinDesk adds that BitMEX continued to lose market share during the sale effort as trading activity moved to larger centralized exchanges and decentralized perpetual futures platforms, making it harder for buyers to justify paying a revenue multiple typically reserved for growing businesses, and the exchange had been reportedly seeking a valuation of around $1 billion.