Summary
- Reputational baggage, fading growth and founder control combined to drive potential acquirers away, as reported by a source familiar with the discussions.
- The crypto exchange failed to secure a buyer before deciding to wind down operations last month.
- BitMEX’s declining business made it difficult to justify a growth valuation, the person stated.
Before once-popular crypto exchange BitMEX revealed plans to wind down operations, it spent two years exploring a sale with multiple prospective buyers including competitor exchanges and payments platform Exodus, but failed to clinch a deal, as reported by a person familiar with the matter.
The would-be acquirers, the person stated, were put off by the company’s founder-led ownership structure, its shrinking business, and lingering reputational issues.
CoinDesk reported in early 2025 that investment bank Broadhaven was advising the Seychelles-based company on a sale process.
Although co-founders Arthur Hayes, Ben Delo and Samuel Reed had long since stepped away from the business after U.S. criminal charges were brought against them in 2020, one prospective buyer was uncomfortable that they still controlled a large majority of the company, the person stated, who spoke on condition of anonymity as the matter is private.
That made negotiations harder because buyers typically want part of the acquisition payout to encourage executives to stay with the company after the deal closes.
