BitMEX sale collapsed as buyers balked at founder ownership and shrinking business
The sale of crypto exchange BitMEX collapsed due to buyer concerns regarding the continued ownership stake of its founders and the company's declining market share. Following the failed sale and a strategic review, the company has announced it will wind down operations.
Why it matters
This illustrates the challenges faced by early crypto pioneers in transitioning to regulated, sustainable business models amidst legal and competitive pressures.
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 said, 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.
The company's deteriorating financial performance compounded these concerns. BitMEX continued to lose market share throughout the sale process as trading activity migrated to larger centralized exchanges and decentralized perpetual futures platforms. This made potential acquirers reluctant to pay the revenue multiple typically reserved for growing businesses, the person said.
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