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Payward Acquires Magic Labs Embedded Wallet Business
Payward Acquires Magic Labs Embedded Wallet Business

Transaction Overview
On July 27, 2026, Payward, the B2B crypto infrastructure parent behind the crypto exchange Kraken, announced a definitive agreement to acquire wallet-as-a-service business Magic Labs. Financial terms of the transaction were not disclosed.

Target: Magic Labs (Wallet Infrastructure)
Founded in 2018 and headquartered in San Francisco, Magic Labs is a wallet-as-a-service infrastructure provider that enables businesses to create non-custodial embedded wallets for their end users. The company was co-founded by Sean Li, Arthur Jen, and Jaemin Jin.

Magic’s core offering is a developer-facing SDK and API that provides embedded wallets with passwordless authentication via email, social login, passkeys, or SSO. The product suite includes 1) API Wallets for server-side management with security and customizable key sharding, and 2) Embedded Wallets for client-side non-custodial key management. As of July 2026, the platform supports more than 30 blockchain networks and provides a white-label UI, fiat onramps, and transaction signing.

As of July 2026, Magic Labs had provisioned more than 60 million wallets and served more than 200,000 developers across more than 18,000 applications. Clients include Polymarket, Naver, Helium, Forbes, WalletConnect, Mattel, and Immutable. During the 2024 U.S. presidential election, Polymarket processed over $3 billion in prediction market transactions with zero downtime, powered by Magic’s embedded wallets. Magic said it had supported over $8.9 billion in cumulative transaction volume for Polymarket as of November 2025.

Magic Labs has raised a total of $83 million in disclosed venture funding across 4 rounds, with significant investors including PayPal Ventures, Northzone, Tiger Global, Digital Currency Group, CoinFund, and Placeholder VC.

In November 2024, Magic Labs announced Newton, a chain unification network built in collaboration with Polygon Labs, expanding beyond wallet infrastructure into cross-chain protocol development. In November 2025, Magic Labs integrated the Newton Protocol SDK across its developer network. The company described Newton Protocol as “the authorization layer for on-chain finance.” These moves preceded the company’s decision to divest its wallet business and refocus entirely on protocol development.

Buyer: Payward
Founded in 2011 and headquartered in San Francisco, Payward is a private B2B crypto infrastructure holding company. Payward operates Kraken, one of the longest-running cryptocurrency exchanges, alongside NinjaTrader, xStocks, Bitnomial, and CF Benchmarks. The company is led by co-CEOs Arjun Sethi and Dave Ripley.

Most relevant to this transaction, Payward operates Payward Services, a B2B infrastructure platform that provides institutions with access to Payward’s trading, custody, settlement, and payments infrastructure via API. The acquisition of Magic Labs adds embedded wallet infrastructure to their offering. In April 2026, Payward launched a white-label fiat-to-crypto onramp through a partnership with Onramper, making embedded wallet infrastructure a natural adjacent capability.

Payward has been expanding beyond its core exchange through acquisition. In 2025, the company acquired NinjaTrader for $1.5 billion (retail futures, M&A Alert) and agreed to acquire Backed Finance (tokenized equities, Press). In 2026, it acquired Magna (token lifecycle management, Press), completed the acquisition of Bitnomial for up to $550 million (regulated derivatives, M&A Alert), and agreed to acquire Reap for $600 million (card issuance and payments, M&A Alert). Including this transaction, Payward has announced or completed 8 acquisitions since early 2025, committing several billion dollars to platform expansion ahead of its planned public listing.

For the full year of 2025, Payward reported adjusted revenue of $2.2 billion, a 33% increase year over year from $1.5 billion in 2024. Trading-based revenue accounted for 47% of the total, with the remaining 53% from asset-based services, including payments, custody, yield, and financing.

In November 2025, Payward raised $800 million at a $20 billion post-money valuation in a round backed by Citadel Securities, Jane Street, and Apollo Global Management, and confidentially filed an S-1 with the SEC ahead of a planned IPO. In April 2026, Deutsche Börse Group made an additional $200 million strategic investment in the company.

Transaction Parameters
Payward has signed a definitive agreement to acquire the wallet-as-a-service business of Magic Labs for an undisclosed amount. The transaction includes Magic Labs’ embedded wallet business, including wallet clients and associated infrastructure.

The transaction is part of a broader corporate restructuring in which Magic Labs is rebranding as Newton Labs to focus on the Newton Protocol. The two companies will remain independent following the close.

Architect Partners served as the exclusive financial advisor to Magic Labs.

Strategic Rationale
Payward is acquiring Magic’s embedded wallet business to augment Payward Services’ B2B offering. Payward Services gives partners a single integration point for trading, custody, tokenized assets, on/off-ramps, and derivatives. The wallet, the account layer where end users actually hold assets and interact with onchain products, was a critical piece partners still had to source from a third party. Magic brings that layer in-house with proven infrastructure: a TEE-based signing solution, an embedded integration layer, and a developer SDK that together have provisioned more than 60 million wallets and supported over $10 billion in stablecoin volume for 200,000+ developers.

On Day 1, Payward can offer fintechs, enterprises, and financial institutions a complete embedded onchain offering under a single provider, spanning wallet provisioning, onboarding, funding, trading, custody, and settlement, without stitching together multiple vendors. Every embedded wallet also becomes a distribution point that routes transaction volume into the rest of Payward’s infrastructure, deepening the non-trading, less volatile revenue that already accounts for 53% of Payward’s total as it heads toward a public listing.

Architect Partners’ Observations
This transaction marks the near-completion of a consolidation wave in embedded wallet infrastructure. In roughly one year, Fireblocks acquired Dynamics ($90M), Consensys acquired Web3Auth ($50M), Stripe acquired Privvy, Ripple acquired Palisade, and Paxos acquired Fordefi. Now each group has its own independent wallet infrastructure provider, and Payward has acquired the category’s pioneer. The market has reached a clear verdict: embedded wallets are foundational infrastructure for every onchain product, and they are a layer of a full-stack platform rather than a standalone business.

The logic is simple: the wallet is becoming the account primitive of onchain finance. Whoever provisions the wallet sits at the front of the customer relationship and routes the volume that follows. For platforms whose trading revenue is inherently cyclical, owning the onboarding layer converts market position into durable, recurring B2B infrastructure revenue.

Sources
Press Release, Payward Services, PitchBook

Alerts

Nakamoto Acquired BTC Inc and UTXO Management to Build a Diversified Bitcoin Operating Portfolio

Eric Risley
February 24th, 2026
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Transaction Overview

On February 17th, 2026, Nakamoto Inc. (NSDQ: NAKA) announced the definitive merger agreements to acquire BTC Inc, an operator of Bitcoin-related media and events, and UTXO Management, a hedge fund advisor focused on Bitcoin and related assets investments. Consideration paid consisted entirely of equity and was completed on February 20th, 2026, with a combined value of $88.4M based on Nakamoto’s closing stock price.

 

Target: BTC Inc.

Headquartered in Nashville, BTC Inc. is a Bitcoin media company. BTC Inc’s portfolio spans 27 media brands, reaching approximately six million people globally

 

BTC Inc is the parent company of Bitcoin Magazine, which was first published in May 2012, the longest-running source of Bitcoin news and commentary. It’s also the organizer of The Bitcoin Conference, one of the largest Bitcoin event series across the United States, Asia, Europe, and the Middle East, with approximately 67,000 attendees in 2025. It operates Bitcoin for Corporations as well, a membership-based platform for companies adopting Bitcoin as a strategic treasury asset, which currently hosts over 40 member companies, including Strategy, for hosting networking events and educational content.

 

As of September 30, 2025, BTC Inc recorded a $65.3M Revenue and $26.5M in net income on a LTM basis.

 

BTC Inc competes with other Bitcoin-focused media and events companies, as well as broader crypto media platforms including CoinDesk, The Block, Blockworks, and Decrypt. In events competitors include CoinDesk (Consensus), Blockworks (Permissionless, Digital Assets Summit), and Token 2049.

 

Target: UTXO Management

UTXO Management, headquartered in Nashville, Tennessee, is a Bitcoin-focused investment advisory firm founded in 2019.

 

UTXO’s core business is serving as the investment advisor to 210k Capital, an open-end hedge fund that pursues an event-based investment strategy focusing on the Bitcoin ecosystem, including equities, derivatives, and Bitcoin-native assets. 

 

As of September 30, 2025, UTXO generated approximately $18.2M in revenue and $13.6M in net income on a LTM basis.

 

UTXO competes with other Bitcoin-focused hedge funds and investment managers, including Galaxy Digital’s asset management arm, Pantera Capital, and many other Bitcoin-native funds.

 

UTXO’s founders are also involved in a broader network of affiliated Bitcoin investment activities, including Bitcoin Magazine Ecosystem, and the strategic advisory for Bitcoin treasury companies. These activities are conducted through related but legally distinct entities from UTXO Management.

 

Buyer: Nakamoto

Nakamoto Inc. (NSDQ: NAKA) is a Nashville-based digital asset treasury (DAT) and diversified business provider that owns and operates a portfolio of Bitcoin-native assets and enterprises. The company positions itself as a diversified Bitcoin operating company spanning crypto treasury, media, and information, as well as asset management. As of February 2026, Nakamoto held 5,398 BTC on its balance sheet, placing itself among the top 20 public Bitcoin holders in the world.

 

Nakamoto traces its public listing to KindlyMD Inc. (formerly NSDQ: KDLY), a Utah-based integrated healthcare services provider. On May 12, 2025, KindlyMD announced its definitive merger agreement with Nakamoto. The merger closed on Aug 14, 2025. The company was formerly rebranded to Nakamoto in January 2026, and its healthcare operations continue under the Kindly LLC subsidiary.

 

The merger was accompanied by a total $750M in financing, including a $540M private placement of public equity (PIPE) tand $200M in senior convertible debentures maturing in 2028. Furthermore, the company filed with the SEC a $4B at-the-market (ATM) program in August 2025, of which only $5.6M had been drawn as of February 2026. In December 2025, Nakamoto refinanced its convertible debt with a $210M Bitcoin-backed loan from Kraken.

 

Nakamoto’s shares reached an all-time high of $34.77 on May 22, 2025, shortly after the merger announcement, with an estimated peak mNAV of about 20.2x. Today, NAKA trades at approximately $0.28, representing an mNAV of 0.5x.

 

Beyond its treasury operations, Nakamoto has taken several steps toward becoming a broader Bitcoin operating company. In Q3 2025, Nakamoto partnered with an undisclosed counterpart to develop Bitcoin-backed financing structures. The BTC Inc and UTXO’s acquisitions serve as part of the strategy, “to further establish Nakamoto as a diversified Bitcoin operating company with global brand, established distribution networks, and institutional capabilities across media, asset management, and advisory services.”

 

Competitors primarily include a growing field of public Bitcoin treasury vehicles, including Strategy, Twenty One Capital, Strive Assets Management, and a long tail of other DATs.

 

Transaction Parameters

Nakamoto, BTC Inc. and UTXO both share overlapping ownership, leadership and are operationally interrelated, with BTC Inc. holding a pre-existing purchase option on UTXO. The transaction is accordingly structured as a chain of call options. Nakamoto exercised its call option to acquire BTC Inc, and BTC Inc concurrently exercised its call option to acquire UTXO.

 

As a result, BTC Inc and UTXO shareholders will receive approximately 363.59M NAKA common stock on a fully diluted basis. Based on NAKA’s closing price of $0.243 on February 20, 2026, total consideration is approximately $88.4M. This is a decline of $18.9M from the consideration at announcement of the deal. 

 

Notable comparable transactions from media sides include Binance | CoinMarketCap for $400M (M&A Alert), CoinDesk | CCData & CryptoCompare (M&A Alert). Asset management comparables include Coinbase | One River Digital Assets Management (M&A Alert), BlockTower | Arca (M&A Alert).

 

Strategic Rationale

Nakamoto’s publicly disclosed rationale for acquiring BTC Inc and UTXO Management is to build an integrated Bitcoin platform, not just a treasury vehicle. The idea is to combine BTC Inc’s media and events audience (distribution, brand, customer access) with UTXO’s asset management and advisory capabilities (capital allocation, institutional services) to create recurring profitable revenue, cross-selling, and operating cash flow. That cash flow can then support balance sheet strength, future acquisitions, and additional Bitcoin accumulation.

 

Architect Partners’ Observations

We are entering a new era for digital asset treasury companies. Today there are 290+ public DATs, of which Architect Partners tracks 20 with public market values above $100M. The average market cap to net asset value (mNAV) for those above $100M is 0.76x. 

 

Selling their crypto assets and distributing the proceeds to shareholders (let’s call this liquidation value) would result in immediate 32% “value creation.” This clear and actionable alternative begs the question: what else can, or should, be considered by management and board members in their capacity as fiduciaries? The fundamental question is how to rebuild valuation levels to at least liquidation value. In this case, Nadamoto is seeking to build operating businesses to complement their Bitcoin holdings and create positive cash generation to either continue to build their Bitcoin treasury or invest into other complementary businesses. 

 

We will see more of this type of transactions by DATs in an attempt to solve their discounted valuation challenges. 

 

Sources

Nakamoto Press Release

Architect Partner M&A Tracker

PitchBook