Mike Novogratz’s Galaxy Digital to Acquire the Crypto Custodian BitGo

By Jordan Lyanchev

Galaxy Digital Holdings, the cryptocurrency-focused financial services company ran by Michael Novogratz, has agreed to purchase the digital asset custodian BitGo. Both parties commented that the acquisition aims to enhance institutional investors’ crypto experience.

  • Founded in 2013, BitGo is a digital asset trust and security company headquartered in California. In the following eight years, the firm reported it was responsible for 20% of all global BTC transactions, and it supports over 400 coins for custody. BitGo’s AUM has increased to over $40 billion.
  • Earlier today, the financial services and investment management company Galaxy Digital announced that its board members have agreed to purchase the crypto custodian.
  • The terms of the merger agreement dictate that BitGo shareholders will get 33.8 million of newly issued shares of Galaxy Digital common stock and $265 million in cash. Ultimately, the aggregate transaction value will be roughly $1.2 billion based on Galaxy Digital’s share price on May 4th.
  • Both parties expect to close the deal by the end of the year. Upon completing the acquisition, Galaxy Digital plans to become a “leading global full-service platform for institutions seeking access to the crypto economy.”
  • Michael Novogratz, the CEO of Galaxy Digital, commented that his company will become a “one-stop-shop” for larger investors. He added that the BitGo purchase will “significantly” accelerate his firm’s 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.” – Novogratz concluded.