Exodus Movement, Inc. Positioned for Growth with Strategic Acquisition of W3C Corp.

Analyst Mark Palmer from Benchmark Co. reiterated a Buy rating on Exodus Movement, Inc. Class A and keeping the price target at $42.00.

Mark Palmer has given his Buy rating due to a combination of factors that highlight Exodus Movement, Inc.’s strategic positioning and growth potential. The company’s recent agreement to acquire W3C Corp., including its subsidiaries Baanx and Monavate, is a significant move that positions Exodus as the first self-custody crypto wallet provider with a complete end-to-end payments stack. This acquisition is expected to enhance the predictability and stability of Exodus’s revenue streams by incorporating more stable and less cyclical income sources such as interchange revenue and payment-processing fees.
Moreover, the acquisition is anticipated to generate substantial revenue and gross profit contributions by 2025 and 2026, respectively, aligning with market expectations. The funding for this acquisition is secured through a combination of cash and financing, with regulatory approvals pending. Additionally, the strategic assets from W3C, such as card-issuing capabilities, offer Exodus the potential to significantly expand its user base beyond crypto-native consumers. These factors collectively support Palmer’s Buy rating and the reaffirmed price target.

In another report released today, Northland Securities also maintained a Buy rating on the stock with a $35.00 price target.