Galaxy Digital to acquire crypto custodian BitGo for $1.2 billion
May 5, 2021, 7:15AM EDT
1 min read
Mike Novogratz's crypto merchant bank Galaxy Digital is set to acquire crypto custodian BitGo for $1.2 billion.
Announcing the news on Wednesday, Galaxy Digitalsaid the deal would be made up of a mix of stock and cash — $265 million in cash and the rest in 33.8 million newly issued shares of Galaxy Digital.
Once completed, the acquisition will make BitGo shareholders own approximately 10% of Galaxy Digital. The deal is expected to close in the fourth quarter of 2021. Upon closing, BitGo co-founder and CEO Mike Belshe will join Galaxy Digital as deputy CEO and become a member of the company's board of directors.
"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," said Mike Novogratz, founder and CEO of Galaxy Digital. "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."
Founded in 2013, BitGo provides crypto custody, trading, prime lending, portfolio, and tax management services. The firm claims to have over $40 billion of assets under custody, serving over 150 exchanges and over 400 institutional clients.
BitGo had been looking for a buyer for months. Last December, there were reports that PayPal will acquire the firm, but those talks fell through. PayPal later acquired crypto custodian Curv for an undisclosed sum.