Galaxy Digital to acquire crypto custodian BitGo for $1.2 billion

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 Digital said 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.

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"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