Exodus Aims to Stabilize Revenue Amid Crypto Volatility with Fintech Push

Exodus Movement Inc. (EXOD) is undergoing a strategic transformation as it seeks to solidify its position in the cryptocurrency and fintech sectors. The company's recent $175 million acquisition of W3C Corp., which includes card issuer Baanx and payments processor Monavate, marks a pivotal shift toward becoming a full-stack crypto payments provider, according to a Benchmark report. This move, described as the firm's "most transformational" yet, is expected to diversify Exodus's revenue streams and reduce reliance on volatile wallet and swap activity, which currently drives its income. By integrating Monavate's and Baanx's regulated infrastructure, Exodus aims to offer end-to-end services from self-custody wallets to card issuance and processing, positioning itself to compete with traditional fintech players.

The acquisition builds on Exodus's earlier purchase of Grateful, a Latin America-focused stablecoin payments startup, which has already enabled the firm to expand its merchant and consumer payment rails. With Monavate's existing 5 million issued cards, the combined platform could scale to support up to 50 million cards, significantly boosting transaction volume and generating stable revenue from interchange fees, recurring issuance, and processing margins. Benchmark analysts project that the acquired businesses could contribute $35–$40 million in revenue next year with gross margins of 45%–55%, contrasting with Exodus's current exposure to crypto market fluctuations.

Exodus's expansion into regulated payments infrastructure is also seen as a response to growing demand for stablecoin-based transactions. Stablecoin payment volumes surged 70% between February and August 2025, with B2B activity accounting for nearly two-thirds of the growth. By leveraging Monavate's capabilities, Exodus can now issue cards on major networks like Visa and Mastercard, broadening its geographic reach into the U.S., UK, and EU. CEO JP Richardson emphasized that the integration of card and payments infrastructure would "close the gap between holding and spending," aligning with the company's mission to make crypto practical for everyday use.

Financially, the deal is being funded through a combination of cash and a bitcoin-backed credit line with Galaxy Digital, reflecting Exodus's continued reliance on its crypto holdings to fuel expansion. While the stock currently trades near a 14-month low, Benchmark reiterated a $42 price target and "Buy" rating, based on 2026 EBITDA forecasts. The firm's strategic pivot toward stable, fintech-like revenue streams could enhance long-term reliability, though risks remain tied to regulatory scrutiny and the broader crypto market's volatility.