Mike Novogratz’s Galaxy Digital Buys Custodian BitGo for $1.2 Billion in Cash & Stock
BitGo currently serves over 150 crypto exchanges and over 400 institutional clients and has $40 billion of assets under its custody, processing more than 30 billion monthly transactions.
Mike Novogratz’s Galaxy Digital Holdings has acquired the digital assets infrastructure provider in a $1.2 billion deal to become a full-service platform for institutions.
“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 Novogratz, CEO, and founder of Galaxy Digital.
Founded in 2013, BitGo currently serves over 150 cryptocurrency exchanges and more than 400 institutional clients. The custodian, which supports more than 400 crypto assets, has $40 billion of assets under its security.
The crypto service provider processes over 30 billion monthly transactions and provides comprehensive insurance to its clients.
“In order for crypto to become this revolutionary transformation, you’re going to need bigger companies that are going to knock heads against the bigger businesses” of traditional finance, Novogratz said in an interview.
With this acquisition, BitGo founder and CEO Mike Belshe aims to serve “significantly more corporate, institutional, and high net worth investor clients.” Belshe will also join as Deputy CEO of Galaxy Digital and become a member of the company's Board of Directors.
As part of the deal, new multiple business lines will be introduced to Galaxy Digital, which will gain over 400 global net new clients.
Under the merger agreement, which is expected to close in Q4 of this year and subject to approval by Galaxy's shareholders, BitGo shareholders will have 33.8 million newly issued shares of Galaxy Digital common stock and $265 million in cash.
“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,” noted Novogratz.