Miami International (MIAX): A High-Growth Exchange Play in the Converging Derivatives and Digital Assets Markets

The financial markets of 2025 are witnessing a seismic shift as derivatives and digital assets converge, creating new opportunities for exchanges that can navigate both regulatory complexity and technological innovation. Miami International Holdings (MIAX) stands at the forefront of this transformation, leveraging its disciplined expansion, cutting-edge infrastructure, and strategic alignment with SEC-regulated crypto products to position itself as a compelling growth story. For investors seeking exposure to the fintech revolution and the maturing digital asset ecosystem, MIAX offers a rare combination of operational rigor, regulatory foresight, and scalable market infrastructure.

Strategic Expansion: Building a Multi-Asset Ecosystem

MIAX's growth strategy is anchored in its ability to vertically integrate and modernize trading infrastructure across derivatives and digital assets. The launch of the MIAX Futures™ Onyx platform in 2025 exemplifies this approach. This proprietary system, developed in-house, supports high-performance order processing for agricultural and financial futures, as well as options on futures. By migrating the Minneapolis HRSW Futures contract to Onyx, MIAX completed a critical post-acquisition modernization effort, setting the stage for future product launches like the Bloomberg 500 Index Futures (pending CFTC approval).

The company's digital asset ambitions are equally ambitious. Since its 2019 partnership with Templum Inc., MIAX has been laying the groundwork for a regulated exchange for digital securities. Its ownership of the Bermuda Stock Exchange (BSX) further underscores its global vision, as Bermuda becomes a hub for crypto-friendly regulation. By integrating digital asset initiatives into its global market ecosystem, MIAX is not only diversifying its revenue streams but also positioning itself to capture the explosive growth in institutional-grade crypto derivatives.

Attractive Valuation: Revenue Growth Outpaces Earnings Metrics

While MIAX's trailing P/E ratio of 1,377.94 appears daunting, a closer look reveals a company trading at a compelling EV/Sales ratio of 1.93—well below the US Capital Markets industry average of 3.8x. This discrepancy reflects MIAX's thin net income ($1.79 million on $1.26 billion in revenue) but also highlights its strong revenue growth. For instance, MIAX Options saw a 69.7% year-over-year increase in trading volume to 89.2 million contracts in May 2025, while MIAX Futures grew by 26.7%.

The company's low EV/Sales multiple suggests investors are valuing MIAX more for its revenue potential than current earnings. With a market cap of $2.47 billion and a P/S ratio of 1.57, MIAX appears undervalued relative to its peers, particularly given its high-throughput trading systems (e.g., MIAX Options' 38 million quotes per second) and expanding product suite.

SEC-Aligned Crypto Products: A Tailwind for Institutional Adoption

The most compelling catalyst for MIAX's long-term growth lies in its SEC-aligned crypto product roadmap. The company is poised to launch cash-settled Bitcoin and Ethereum futures, as well as options on crypto ETFs like the iShares Bitcoin Trust (IBIT). These products align with the SEC's cautious yet supportive stance on regulated crypto derivatives, offering investors structured exposure to digital assets without the volatility and regulatory risks of unlisted crypto markets.

A key regulatory win in 2025 was MIAX's proposal to increase position limits for IBIT options from 25,000 to 250,000 contracts. This move, supported by a comprehensive analysis of liquidity and market stability, signals the SEC's growing comfort with institutional-grade crypto derivatives. By focusing on ETF-linked products, MIAX is effectively bridging the gap between traditional finance and digital assets, a strategy that could attract a new wave of institutional capital.

Cross-Border Expansion and Regulatory Agility

MIAX's strategic acquisitions, such as the International Stock Exchange (TISE) for £70.4 million, further diversify its global footprint. TISE's leadership in the European professional bond market complements MIAX's US-based options and futures platforms, while its Bermuda-based subsidiaries provide a crypto-friendly jurisdiction for future expansion. This hybrid approach—leveraging international regulatory advantages while maintaining a strong US presence—enables MIAX to scale its crypto product offerings while mitigating risks.

Investment Thesis: A Balanced Play on Growth and Compliance

For investors, MIAX represents a balanced opportunity: a high-growth exchange operator with a conservative capital structure ($174 million in cash reserves, 10.55% EBITDA margin) and a clear path to capturing the $1.5 trillion global derivatives market and the rapidly expanding crypto derivatives sector. While its P/E ratio remains elevated, the company's low EV/Sales multiple and robust revenue growth justify a long-term investment horizon.

Key Risks to Consider:
- Regulatory delays in crypto product approvals.
- Intense competition from established exchanges like Cboe and Nasdaq.
- Volatility in digital asset markets affecting trading volumes.

However, MIAX's disciplined approach to compliance, cross-border expansion, and technology-driven infrastructure positions it to outperform in a sector where regulatory clarity and institutional adoption are critical success factors.

Conclusion: A Strategic Bet on the Future of Finance

Miami International Holdings is more than a traditional exchange operator—it is a fintech innovator navigating the convergence of derivatives and digital assets with precision. By combining proprietary technology, SEC-aligned crypto products, and a global market ecosystem, MIAX is well-positioned to capitalize on the $200 billion+ crypto derivatives market and the broader shift toward institutional-grade digital asset exposure. For investors seeking a growth-focused play with a strong balance sheet and regulatory tailwinds, MIAX offers a compelling case in 2025.

Investment Recommendation: Buy MIAX for its long-term growth potential, with a focus on its SEC-aligned crypto product launches and expanding derivatives infrastructure. Use pullbacks in its high P/E ratio as opportunities to accumulate shares at a discount to its intrinsic value.