In breaking news today, it was announced by Galaxy Digital Holdings Ltd, that it has agreed to buy BitGo, the leading independent digital assets infrastructure provider.
The acquisition of BitGo will see Galaxy Digital positioned as the preeminent global full-service platform for institutions. It will now be able to offer crypto products and services at scale to institutions seeking exposure to the cryptocurrency sector.
Mike Novogratz, CEO of Galaxy Digital said of the acquisition:
“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology,”
“The power of the technology, solutions, and people we will have as a result of this acquisition will unlock unique value for our clients and drive long-term growth for our combined business. We are excited to welcome Mike Belshe and the talented BitGo team to Galaxy Digital.”
BitGo, founded in 2013, was the first independent regulated custodian, purpose-built for digital assets. It counts among its products prime lending, trading, portfolio management, and tax solutions.
With over $40 billion in assets under custody, BitGo is one of the leading custody providers for more than 150 exchanges and over 400 institutional clients.
It processes more than 30 billion transactions a month and is custodian of around 400 cryptocurrency coins and tokens. Its insurance is one of the most comprehensive on the market.
The BitGo products are complementary to those of Galaxy Digital so that the combined businesses will now be able to serve all clients’ needs in the areas of custody and transacting of cryptocurrencies.
“Joining Galaxy Digital represents an exciting new chapter for our business, as our current clients gain access to a wide set of financial solutions,” said BitGo CEO and Founder, Mike Belshe. “We will now be in a position to offer our best-in-class digital asset infrastructure capabilities to significantly more corporate, institutional, and high net worth investor clients.”
The acquisition of BitGo will offer Galaxy Digital many new benefits. Chief among these are over 400 new institutional clients, Institutional-grade levels of security and operational performance, 50 engineers and key product and security infrastructure personnel, an expanded geographical reach, and revenue synergy opportunities.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.