BitMEX to Close: Why Talks to Sell the Company for $1 Billion Fell Through

BitMEX spent approximately 2 years searching for potential buyers before deciding to close its operations. However, the ownership issue, with co-founders Arthur Hayes, Ben Delo and Samuel Reed still holding most of the shares, became an obstacle, as potential buyers concluded that it would be difficult to restructure the shareholding. BitMEX conducted a review with Broadhaven that included multiple potential buyers, including Exodus, but it was unclear whether any formal bids had been submitted.

Declining trading activity also complicated the negotiations. As BitMEX's market share contracted, buyers sought to avoid valuing the company when its dominance in derivatives trading had diminished, making it difficult to meet standard purchase price payment terms. BitMEX introduced the XBTUSD perpetual swap in 2016, establishing the perpetual futures format, but competing platforms now have the advantage, making it difficult to justify a growth-stage valuation.

Against this backdrop, HDR Global Trading abandoned the sale following a strategic review and announced that the business would close. New account registrations have been suspended, and a complete shutdown is scheduled for 23 September. BitMEX is also facing litigation over the retention of customer collateral and insider trading, while the loss of the acquisition opportunity reflects the impact of changes in the market structure.

The failure of the sale talks suggests that, as M&A in crypto-asset trading becomes active again, buyers are seeking tangible value, including current earnings and a stable ownership structure. Meanwhile, transactions involving other companies, such as SBI Holdings' acquisition of Bitbank and the acquisition of BlockFills, indicate a focus on the continuity of asset management and payments infrastructure. BitMEX had brand strength, but could not overcome its asking price and difficult ownership structure.