Mike Novogratz's Galaxy Digital to buy BitGo in $1.2 Billion Crypto deal

Galaxy Digital has announced that it will buy digital asset infrastructure provider BitGo. The aggregate transaction value stood at $1.2 Billion including 33.8 million new shares of Galaxy Digital common stock and $265 million in cash.

Founded in 2018, New York-based Galaxy Digital is a full financial services provider in the digital asset, cryptocurrency, and blockchain technology sectors. As of now, Michael Novogratz serves as the CEO of Galaxy Digital. The co-founders include David J. Namdar and Mike Novogratz.

Founded in 2013, San Francisco-based BitGo digital asset financial services and infrastructure provider with a focus on security, custody, and liquidity solutions. To date, BitGo has raised  $69.5 Million in six funding rounds, according to CrunchBase. The BitGo co-founders include Ben Davenport, Mike Belshe, and Will O'Brien.

Executive Opinion

CEO and Founder of Galaxy Digital, Mike Novogratz, said, "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. 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. We are excited to welcome Mike Belshe and the talented BitGo team to Galaxy Digital."

BitGo CEO and Founder, Mike Belshe, said, "Joining Galaxy Digital represents an exciting new chapter for our business, as our current clients gain access to a wide set of financial solutions. We will now be in a position to offer our best-in-class digital asset infrastructure capabilities to significantly more corporate, institutional, and high net worth investor clients." 

Galaxy Digital's BitGo acquisition

Since 2018, BitGo is an independently regulated custodian, purpose-built for digital assets through its BitGo Trust Company.  According to the press release, BitGo as a digital custodian has over $40 billion of assets under custody, serving over 150 exchanges and over 400 institutional clients. 

The BitGo acquisition will help position Galaxy Digital as a leading global full-service platform for the crypto economy, notes the announcement.

The BitGo acquisition also brings 400 new clients and institutional-grade levels of security and operational performance with SOC 1 Type 1 and Soc 2 Type 2 audits to Galaxy Digital. The deal also expands Galaxy Digital's geographic reach.

BitGo founder Mike Belshe will join Galaxy Digital as Deputy CEO. Mike Belshe will also join as a member of Galaxy Digital's Board of Directors, notes the announcement.

Galaxy Digital's BitGo acquisition is expected to close in the last quarter of 2021.

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