<p>Mike Novogratz's crypto merchant bank <a href="https://www.theblockcrypto.com/linked/79265/galaxy-digital-shareholder-parafi-capital-defi">Galaxy Digital</a> is set to acquire crypto custodian <a href="https://www.theblockcrypto.com/linked/18905/bitgo-lgo-markets-team-up-to-provide-crypto-custody">BitGo</a> for $1.2 billion.</p> <p>Announcing the news on Wednesday, <a href="https://www.theblockcrypto.com/linked/8530/novogratzs-galaxy-digital-reportedly-set-to-raise-a-250m-fund-to-help-needy-crypto-firms">Galaxy Digital</a> <a href="https://www.newswire.ca/news-releases/galaxy-digital-to-acquire-bitgo-to-form-pre-eminent-global-provider-of-digital-asset-financial-services-for-institutions-834031710.html">said</a> 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.</p> <p>Once completed, the acquisition will make <a href="https://www.theblockcrypto.com/linked/18905/bitgo-lgo-markets-team-up-to-provide-crypto-custody">BitGo</a> shareholders own approximately 10% of <a href="https://www.theblockcrypto.com/post/28442/mike-novogratzs-galaxy-digital-rolls-out-crypto-options-business-as-institutional-demand-grows">Galaxy Digital</a>. The deal is expected to close in the fourth quarter of 2021. Upon closing, <a href="https://www.theblockcrypto.com/linked/3395/bitgo-announces-support-for-gemini-dollar">BitGo</a> co-founder and CEO Mike Belshe will join <a href="https://www.theblockcrypto.com/post/6231/galaxy-digital-spikes-23-after-novogratz-increases-his-stake-in-the-floundering-crypto-firm">Galaxy Digital</a> as deputy CEO and become a member of the company's board of directors.</p> <p>"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 <a href="https://www.theblockcrypto.com/post/74989/galaxy-posts-q2-results-reporting-uptick-in-trading-and-banking-activity-despite-slump-in-net-income">Galaxy Digital</a>. "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."</p> <p>Founded in 2013, <a href="https://www.theblockcrypto.com/linked/1973/goldman-sachs-and-galaxy-digital-ventures-are-investing-in-bitgo">BitGo</a> 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.</p> <p><a href="https://www.theblockcrypto.com/linked/25059/blockchain-capital-onboards-bitgo-co-founder-and-facebook-veteran-as-its-venture-partner">BitGo</a> 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.</p>