BitMEX Shutdown: Two Years of Failed Sale Talks
BitMEX, one of the pioneering crypto derivatives exchanges, has been on life support for two years as its parent company, HDR Global Trading, tried to find a buyer. The Seychelles-based exchange reportedly held sale talks with multiple prospective buyers, including rival cryptocurrency exchanges and payment and wallet company Exodus.
The negotiations were complicated by BitMEX's unique ownership structure, which saw co-founders Arthur Hayes, Ben Delo, and Samuel Reed retain control of a large majority of the company's equity despite leaving management in 2020 after facing US authorities' criminal charges. This arrangement made it harder for acquirers to structure their offers, as they often reserve part of the consideration for current managers.
BitMEX's declining market share and revenue also weakened buyer interest. The exchange had seen its monthly futures volume decline from over $100 billion in 2021 to between $25 billion and $30 billion in late 2024, making it harder to justify a valuation of around $1 billion.