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Galaxy Digital Holdings, the crypto investment firm founded by Wall Street veteran Mike Novogratz is making a bold move in the crypto space. In a recent development, the cryptocurrency financial services provider announced the acquisition of the world’s leading crypto custodian BitGo.
As per Galaxy Digital, this acquisition will provide the firm with major mileage in becoming a full-stack crypto solution provider for institutional players. BitGo is the first regulated custodian formed in 2013. Today, it manages more than $40 billion worth of crypto assets serving over 150 global exchanges and 400 institutional clients.
It also supports the custody of more than 400 cryptocurrencies while offering its clients the best insurance protection in the market. Speaking of this development, Galaxy Digital founder and CEO 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.”
A Massive $1.2 Billion Deal
As per the terms of the agreement, this is a mix of cash and stock deal. Based on Galaxy Digital’s share price (TSE: GLXY) on Tuesday, May 4 closing, the acquisition has been approximately valued at $1.2 billion. Galaxy Digital will also fund part of the deal aka $265 million in cash from its balance sheet.
Besides, BitGo shareholders will also get incremental shares of Galaxy Digital’s common stock in exchange for net digital assets. These shareholders will own nearly 10% of the proforma company. 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.”
The Board of directors of both the companies has approved the transaction and it shall close by the end of 2021.
The post Breaking: Galaxy Digital to Acquire Leading Crypto Custodian BitGo for $1.2 Billion appeared first on Coingape.
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