Galaxy Digital, led by Michael Novogratz, has agreed to buy custodian service BitGo for $ 1.2 billion. Rumors of a possible deal first surfaced last month.
According to a statement from Galaxy Digital, the company has agreed to purchase cryptocurrency custodian service BitGo for $ 1.2 billion in stock and cash. Under the terms of the deal, BitGo shareholders will receive 33.8 million Galaxy Digital common shares and approximately $ 265 million in cash.
“The acquisition of BitGo turns Galaxy Digital into a full-service financial institution for institutions and significantly accelerates our mission to institutionalize digital asset and blockchain ecosystems,” said Galaxy Digital CEO Mike Novogratz.
Galaxy Digital holds over $ 40 billion in assets and serves over 150 exchanges and 400 institutional investors. BitGo processes over 30 billion transactions per month and supports the storage of over 400 cryptocurrencies.
As a result of the purchase, Galaxy will receive about 400 large customers around the world. Moreover, the company intends to “return home”, leading to a US listing at the end of 2021. The purchase will also allow Galaxy Digital to expand geographically with the addition of a San Francisco office.
“The technology, solutions and people that will appear in our team as a result of this acquisition will open up a unique opportunity for our customers and will contribute to the long-term growth of our combined business,” added Novogratz.
In April, for the first time, it was reported that the cryptocurrency company Galaxy Digital, led by Michael Novogratz, was actively negotiating the purchase of a regulated custodian of BitGo. Last December, Fortune sources reported that payment giant PayPal was in talks to buy BitGo, but they fell through. As a result, PayPal bought the custodian service Curv.
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