Galaxy Digital to Buy Crypto Custodian BitGo for $1.2 Billion

Galaxy Digital, the crypto merchant bank headed by billionaire Hedge Fund Manager, Mike Novogratz, is acquiring the digital asset custodian, BitGo for a total sum of around $1.2 billion.

Wednesday’s announcement detailed that the Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term deal is expected to close in the fourth quarter of 2021. Once closed, Galaxy Digital can position itself as one of the leading full-service crypto companies targeting institutions.

A Cash and Stock Deal

The two companies have agreed on the involvement of both cash and stock to seal the deal. BitGo shareholders will receive 33.8 million of newly issued shares of Galaxy Digital common stock and the rest $265 million in cash.

BitGo shareholders will hold around 10 percent of Galaxy Digital after the closure of the deal. Additionally, the new owner will retain the entire BitGo workforce and BitGo Founder and CEO, Mike Belshe, will join Galaxy as Deputy Chief Executive and will also sit on the Board.

“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 Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology,” Novogratz said in a statement. “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.”

Founded in 2013 as a crypto custodian, BitGo has aggressively expanded into other crypto-focused business areas in recent years. It has launched lending and institutional brokerage services and also acquired a few startups to expand its reach.

According to BitGo, it holds over $40 billion of assets under custody, with more than 150 exchanges and over 400 institutional clients.

“Joining Galaxy Digital represents an exciting new chapter for our business, as our current clients gain access to a wide set of financial solutions,” Belshe said.