Another major crypto acquisition, this time involving Galaxy Digital and BitGo.
Galaxy Digital Announces BitGo Buy
Galaxy Digital, the billion-dollar crypto asset firm run by Mike Novogratz, has acquired BitGo.
In a press release , the company detailed its plans to buy BitGo using stocks and cash. BitGo shareholders are due to receive 33.8 million Galaxy Digital common stock shares and $265 million in cash, which will come from Galaxy Digital’s balance sheet. That puts the total value at roughly $1.2 billion after factoring in GLXY’s share price at yesterday’s market close.
Novogratz stated that the acquisition would help his company in its goal to become an institutional hub in the digital assets space. He 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 press release also outlines the firm’s plans for “reorganization and domestication” with the intent of going public in the U.S. later this year. Galaxy Digital is currently domiciled in the Cayman Islands and will move to Delaware.
BitGo currently holds over $40 billion in digital assets and serves around 400 institutional clients. Those clients will now be managed by Galaxy Digital, while other benefits include new business lines, more business diversity, and greater geographic reach.