Galaxy Digital Holdings will buy cryptocurrency storage provider BitGo Inc. for about $ 1.2 billion worth of cash and stocks.
With the deal, which is a mix of cash and share transfer, Galaxy Digital will pay $ 265 million in cash and transfer 33.8 million shares to finance the acquisition. Thus, BitGo shareholders will own 10% of Galaxy Digital.
Mike Novogratz , CEO and founder of New York-based Galaxy Digital, said :
“The acquisition of BitGo makes Galaxy Digital a focal point for enterprises and significantly accelerates our mission to institutionalize digital asset ecosystems and Blockchain technology.”
BitGo was founded in 2013 by Mike Belshe, an engineer who previously worked on Google Chrome. Belshe will join Galaxy Digital as Executive Vice President and become a board member of the company.
According to a press release, BitGo, which has more than 400 corporate clients, has more than $ 40 billion in assets in custody, and the company serves more than 150 exchanges. The company processes about 30 billion transactions per month and allows storage of more than 400 coins and tokens.