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.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

"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.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.