PayPal will not acquire crypto custodian BitGo, exploring other acquisitions: Report
December 24, 2020, 7:00AM EST
1 min read
PayPal's rumored acquisition talks with crypto custodian BitGo have fallen through, Fortune reported Thursday, citing "multiple sources."
In October, there were reports that BitGo could get acquired by PayPal, among other crypto companies. The payments giant is now reportedly exploring other potential buys.
Meanwhile, BitGo has been "in talks with everyone" over the years, and the company won't accept a "small exit," CEO Mike Belshe told Fortune.
Founded in 2013, the custodian isn't profitable yet. It is in "growth mode" and has a "very healthy balance sheet," said Belshe. He added that the company has no plans to raise more funds in the near future. BitGo has raised a total of $69.5 million in external funding to date, according to Crunchbase.
The company currently holds more than $16 billion worth of crypto assets for clients, and is adding new customers every week, said Belshe.
Meanwhile, PayPal is currently closely working with crypto services firm Paxos. Paxos's brokerage service powers PayPal's crypto trading feature. Users can buy bitcoin and other cryptocurrencies via PayPal digital wallet, powered by Paxos.