In a significant strategic shift, Exodus Movement (EXOD) has reported a notable reduction in its Bitcoin holdings during the first quarter of the year, alongside an increase in its Solana (SOL) assets. As part of its preparations to finalize a deal with W3C payments, the crypto wallet provider has moved more of its balance sheet into cash.
According to Exodus’ latest quarterly filing, the company held 628 BTC at the end of March, reflecting a decline from 1,704 BTC at the end of the previous year. Consequently, the value of these Bitcoin holdings plummeted to approximately $42.8 million, a marked decrease from $149.2 million.
In terms of revenue, the company experienced a sharp drop of 36.8%, totaling $22.7 million in Q1 compared to $36 million during the same period last year. The net loss for the company also widened to $32.1 million, up from $12.9 million a year prior, significantly influenced by a $36.4 million loss from cryptocurrency investments.
In contrast, Exodus increased its Solana holdings from 12,473 to 17,541 SOL throughout the quarter. However, the fair value of these assets saw a slight decline to $1.5 million, down from $1.6 million, reflecting the broader market downturn.
During the quarter, Exodus disclosed that it sold $73.2 million in cryptocurrency while purchasing only $962,000. The firm attributed the increase in net cash sales to proceeds earmarked for the W3C acquisition. In its filing, Exodus stated, “During Q1 2026, the Company has continued to sell digital assets to prepare for the next disbursement related to the W3C closing, and has set aside over $70 million in US dollar reserves for these obligations.”
The company also noted a substantial increase in cash, cash equivalents, and stablecoins, rising to $74.4 million from just $5.2 million at year-end. Total crypto and liquid assets held also declined to $122.6 million, down from $161.6 million. While the filing did not provide a breakdown of sales by token, it was evident that the shift was predominantly focused on Bitcoin, which saw a 63% decline, compared to a 41% increase in SOL value. In Q1, Bitcoin lost about 23% of its value, whereas SOL experienced a drop exceeding 34%.
On May 1, Exodus completed its acquisition of Monavate and Baanx, which enhances its card issuing and payments infrastructure within its self-custody business. This acquisition follows a $175 million agreement to obtain W3C’s payments units, furthering its ambitions in the stablecoin payments sector.
As of recent trading data, EXOD shares experienced a decline of 3.1% in pre-market trading, settling at $7.47.
