Key facts
- BitMEX explored a sale for two years before deciding to wind down operations.
- Prospective buyers were deterred by the company's founder-led ownership structure, shrinking business, and reputational issues.
- The exchange continued to lose market share to larger centralized and decentralized platforms.
- BitMEX announced its decision to wind down operations on July 24, with a planned closure on September 23.
- The exchange was reportedly seeking a valuation of around $1 billion.
Crypto exchange BitMEX spent two years attempting to find a buyer before ultimately deciding to wind down its operations, according to a source familiar with the discussions. Potential acquirers, including competitor exchanges and payment platform Exodus, were reportedly deterred by the company's founder-led ownership structure, its declining business, and lingering reputational issues stemming from U.S. criminal charges against its co-founders in 2020.
Despite co-founders Arthur Hayes, Ben Delo, and Samuel Reed having stepped away from the business, they still controlled a majority stake, making negotiations difficult as buyers typically seek executive retention post-acquisition. Compounding these concerns was BitMEX's deteriorating financial performance and loss of market share to larger centralized exchanges and decentralized perpetual futures platforms. This made potential buyers hesitant to pay a growth-based valuation.
BitMEX, which pioneered the perpetual futures contract in 2016, announced on July 24 that it would cease operations following a strategic review by its parent company, HDR Global Trading. New account registrations were halted immediately, with a planned closure date of September 23. The exchange was reportedly seeking a valuation of around $1 billion during its sale process, though it is unclear if formal bids were submitted.
The failed sale contrasts with a broader rebound in crypto dealmaking, where acquisitions are being pursued to expand trading, custody, and infrastructure businesses. However, BitMEX entered the market with a declining market share, legal baggage, and a complicated ownership structure. Recent deals in the digital asset industry include SBI Holdings acquiring Bitbank for $289 million and Bullish agreeing to purchase Equiniti for $4.2 billion. Advisory firm Architect Partners reported 144 announced M&A deals worth $11.8 billion in 2026 so far, a 3.5% increase year-over-year.
BitMEX is also facing a lawsuit alleging it withheld trader collateral and engaged in insider trading, with claims that co-founders designed the platform to retain customer collateral while transferring excess bitcoin to the company's insurance fund.