Why Did BitMEX Fail To Find A Buyer?
BitMEX spent roughly two years exploring a sale before deciding to wind down operations, but prospective buyers were deterred by its ownership structure, shrinking trading business and lingering reputational problems.
The Seychelles-based crypto derivatives exchange worked with investment bank Broadhaven during the sale process and held discussions with several potential acquirers, including competing exchanges and payments platform Exodus. BitMEX was seeking a valuation of around $1 billion, although it is unclear whether any formal bids were submitted.
One obstacle was the continued control held by co-founders Arthur Hayes, Ben Delo and Samuel Reed. The three had stepped away from operating roles after U.S. criminal charges were brought against them in 2020, but they still controlled a large majority of the company.
That ownership structure complicated negotiations because acquirers often want part of a purchase price tied to executives who will remain with the business after closing. A company where much of the equity belongs to founders no longer running day-to-day operations can make that structure harder to build.
BitMEX and Exodus did not respond to requests for comment.
How Did Falling Trading Activity Hurt The Sale?
BitMEX’s declining market share created a second problem. Trading activity continued moving toward larger centralized exchanges and decentralized perpetual futures platforms while the company was looking for a buyer.
That weakened the case for a valuation based on the revenue multiples typically paid for growing crypto businesses. Potential acquirers were being asked to value a historically important exchange at a time when its share of derivatives trading was moving in the opposite direction.
The decline is particularly notable because BitMEX helped create one of crypto’s most successful trading products. The exchange pioneered the perpetual futures contract in 2016 with its XBTUSD perpetual swap, allowing traders to maintain leveraged long or short exposure without a fixed expiration date.
Perpetual contracts later became the dominant form of crypto derivatives trading and are now widely used on venues including Binance, Bybit and Hyperliquid. BitMEX therefore helped build the product category that ultimately became more successful on competing platforms.
Investor Takeaway
BitMEX’s failed sale shows that a well-known brand and influential technology do not guarantee acquisition value. Buyers ultimately pay for current revenue, liquidity, growth prospects and an ownership structure that can support a transaction.
Why Is The Failed Sale Different From Other Crypto Deals?
The unsuccessful process came during a rebound in digital asset mergers and acquisitions. There have been 144 announced crypto deals worth $11.8 billion so far in 2026, up 3.5% from the same period last year, according to data from advisory firm Architect Partners.
Recent transactions include SBI Holdings agreeing to acquire Japanese crypto exchange Bitbank for $289 million, Keyrock purchasing BlockFills’ institutional trading business and Bullish agreeing to acquire transfer agent Equiniti for $4.2 billion.
Those deals show that buyers remain willing to spend on trading, custody, payments and market infrastructure. BitMEX, however, came to market with declining activity and unresolved legal and reputational concerns. That made it harder to benefit from stronger acquisition demand across the rest of the sector.
The contrast also shows that higher crypto valuations do not lift every company equally. Acquirers can pay premiums for businesses that provide new clients, licenses, technology or expanding revenue, while companies losing market share may struggle to justify prices based on their earlier prominence.
What Happens To BitMEX Now?
BitMEX announced on July 24 that it would wind down after a strategic review by parent company HDR Global Trading. The exchange immediately stopped accepting new account registrations and plans to close on Sept. 23.
The shutdown ends an 11-year period in which BitMEX moved from being one of crypto’s most influential derivatives exchanges to a much smaller participant in an increasingly concentrated market.
The company is also facing a lawsuit alleging that it withheld traders’ collateral and engaged in insider trading. The complaint claims the founders designed the platform to retain customer collateral while transferring excess Bitcoin into the exchange’s insurance fund. The allegations add another legal issue as BitMEX works through the closure process.
For the wider exchange sector, the failed sale is a reminder that consolidation is likely to favor businesses that still control useful liquidity, customers or infrastructure. BitMEX had history and a recognizable brand, but buyers appear to have concluded that those assets were not enough to overcome weaker financial performance and a difficult ownership structure at the price being sought.