The cryptocurrency-focused financial services firm Galaxy Digital agreed to buy BitGo. Mike Novogratz’s Galaxy Digital has announced to purchase crypto custody firm BitGo for over $1.2 billion in cash and stock. Bitgo shareholders will receive $33.8 million in Galaxy Digital Common stocks and $256 million in cash. The total value of the deal to reach approximately $ 1.2 billion.
“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystem and blockchain technology,” said Mike Novogratz, in an announcement.
Galaxy has claimed it will gain about 400 new global clients from the purchase. What’s more, the company set to undergo a “Domestication process,” which hopes will eventually lead to US listing later in 2021. The acquisition is the first $1 billion deal in the cryptocurrency industry.
“The power of the technology, solutions, and people we will have as result of this acquisition will unlock unique value for clients and drive long-term growth for our combined business.”
Galaxy Digital holds over $ 40 billion in assets under custody and serves over 150 exchanges and 400 institutional clients. The purchase also allows Galaxy Digital to expand Geographically with the addition of the west coast office in San Francisco.
BitGo shareholders will own about 10% of the combined company. BitGo CEO Mike Belshe will become Galaxy Digital’s deputy CEO and a member of the company’s board. “Joining Galaxy Digital represents an exciting new chapter for our business, as our current client gain access to wide set of financial solution,” said Mike Belshe.
The deal expected to close in Q4, subject to regulatory scrutiny and approval by a vote by Galaxy shareholders. It’s the second high-profile acquisition in the crypto space in recent days. Coinbase, at the end of April, announced to acquire Skew. In March, PayPal also announced to acquire security firm Curv.
