Exodus primed for more stable, fintech-like revenue after W3C acquisition: Benchmark

Exodus Movement’s $175 million agreement to acquire W3C Corp. marks the company’s “most transformational” move yet and positions it to become the first major self-custody wallet provider with an end-to-end payments stack, according to a new report from Benchmark’s Mark Palmer.

The acquisition — which brings card issuer Baanx and payments processor Monavate under Exodus’s umbrella — would extend the company’s reach from wallets and custody into issuing, processing, and settlement. Benchmark said the deal also gives Exodus regulated infrastructure, stablecoin payments rails, and global licensing relationships across the U.S., UK, and EU.

Palmer argued that the most important shift is financial.

Exodus’s revenue today is tied to volatile wallet and swap activity, while Monavate and Baanx bring steadier income streams such as interchange, recurring issuance, and payment-processing fees. Management expects the acquired businesses to generate $35–$40 million of revenue next year with 45%–55% gross margins.

Benchmark highlighted card issuance as the key metric once the deal closes. Monavate has issued roughly 5 million cards, and the combined platform could support up to 50 million, which would help Exodus expand beyond crypto-native users into mainstream retail payments. A larger card base would translate into higher transaction volume and more predictable fintech-style revenue, the report said.

The note also pointed to strategic fit. Exodus recently bought Latin America–focused stablecoin payments startup Grateful, giving it both merchant and consumer rails ahead of integrating W3C. The acquisition will be funded with cash and Exodus’s bitcoin-backed credit line with Galaxy Digital.

Exodus price outlook

Benchmark reiterated its Buy rating and $42 price target, based on 2026 EBITDA forecasts.

Exodus (EXOD), which trades on NYSE Arca, is hovering just above a more than one-year low near $15.25 according to The Block's Price Page . Hitting Benchmark’s $42 price target would represent an increase of more than 175%.