BitMEX sale falls through... Founder's stake and business contraction prove to be obstacles

BitMEX was the first exchange to introduce perpetual contracts with the launch of XBTUSD perpetual swaps in 2016, and today, most of the derivative trading volume on major exchanges like Binance, Bybit, and Hyperliquid utilizes this structure. However, despite its pioneering role, BitMEX has fallen behind in the competition and its attempts to sell the company over the past two years have failed. According to sources familiar with the matter, multiple potential buyers, including Exodus, were involved in negotiations, but no deal was reached. There were three main obstacles. First, despite the fact that co-founders Arthur Hayes, Ben Delo, and Samuel Reed stepped down from management positions after being indicted in the United States in 2020, they still held the majority of the company's shares. In typical acquisition deals, there are incentive structures to retain management, but the founders' control structure presented a significant hurdle. Second, the company's fundamentals had deteriorated. As trading volume shifted to larger centralized exchanges and decentralized perpetual futures platforms, BitMEX's market share continued to decline throughout the negotiation process. This made it difficult to justify a revenue multiple typically applied to growing companies, according to the source. The company was reportedly seeking a valuation of approximately $10 billion, but it is unclear whether any formal bids were actually submitted. Third, legal risks remained. The co-founders' prior criminal charges in the United States posed a reputational risk to potential buyers, and a civil lawsuit has now been filed alleging misappropriation of customer funds and insider trading. The lawsuit claims that the co-founders designed a system to retain customer deposits within the platform. Investment bank Broadhaven was reportedly hired to advise HDR Global Trading, the Seychelles-based parent company, on the sale, as reported by CoinDesk in early 2025. After completing a strategic review, HDR Global Trading officially announced its closure on July 24, immediately halting the registration of new accounts and announcing a complete shutdown on September 23. This failed sale contrasts with the overall M&A activity in the industry. According to Architect Partners, as of 2026, 144 M&A deals have been announced, totaling $11.8 billion, a 3.5% increase compared to the same period last year. Notable examples include SBI Holdings' acquisition of the Japanese exchange Bitbank ($289 million), Keyrock's acquisition of BlockFills' institutional trading business, and Bullish's acquisition of Equiniti ($4.2 billion). Despite the active M&A market, BitMEX ultimately failed to find a buyer due to its declining market share, legal risks, and complex ownership structure.