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, Galaxy Digital bought BitGo, Forex-News, Forex-News
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Galaxy Digital bought BitGo

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, Galaxy Digital bought BitGo, Forex-News, Forex-News

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, Galaxy Digital bought BitGo, Forex-News, Forex-News
, Galaxy Digital bought BitGo, Forex-News, Forex-News

Through a press release, it became known that the cryptocurrency investment firm Galaxy Digital Holdings bought BitGo. One of the largest custodians of Bitcoin in the world. During the past week it emerged that the investment firm led by billionaire Michael Novogratz, Galaxy Digital, could be in talks to finalize the purchase of BitGo.

The news in question was confirmed on May 5. They also announced that the amount of the acquisition amounts to about 1,200 million dollars. The company paid $ 265 million in cash. While the rest of the funds come from the issuance of more than 33 million new shares. Exposes the press release.

Rumors of the BitGo purchase were made known since last week

At the time, sources reported that it made sense to finalize the purchase of BitGo, mainly for its service for the custody of cryptocurrencies. They also highlighted the fact that the company is listed as part of the Wrapped Bitcoin (WBTC) ecosystem. For which there is already more than USD 8,500 million in BTC available as a guarantee for the issuance of these tokens that circulate on the Ethereum network.

, Galaxy Digital bought BitGo, Forex-News, Forex-News

«BitGo shareholders will own approximately 10% of the company, “which plans” to keep all current BitGo employees and enter into employment agreements with key members of the management team.».

Galaxy Digital is one of the companies with the highest holding of bitcoins in its treasury. According to data from BitcoinTreasuries, the company owns 4,000 BTC, equivalent to more than $ 220 million today. Last April, the company applied for approval for an exchange-traded investment fund (ETF) in Bitcoin with the United States Securities and Exchange Commission, the SEC.

For his part, Mike Novogratz, CEO and founder of the company, believes that the purchase of BitGo establishes them “as a one-stop shop for institutions.” In addition, it gives new impetus to its mission to ‘institutionalize digital asset ecosystems and blockchain technology’.

The statement states that the acquisition of BitGo introduces new lines of business. Add more than 400 new clients and expand the investment firm’s geographic reach.

Competition for the American firm

The interest on the part of Galaxy Digital further reinforces the existing bid between several companies. Which would be interested in becoming the new owners of BitGo with the aim of further expanding its offer of services related to cryptocurrencies.

Reports surfaced in late October 2020, noting that digital payments company PayPal was also in talks to buy from BitGo. However, the only purchase that was made was that of Curv. Another company for the custody of cryptocurrencies, for which it closed the commercial agreement agreeing to the payment of USD 200 million.

With the purchase of the company, the current CEO of BitGo, Mike Belshe, will become part of the board of directors of Galaxy Digital. In addition, he was appointed deputy general manager of the company.

BitGo currently holds more than $ 40 billion in custody, according to estimates released by Galaxy Digital. The custodian company is one of the most important in the cryptocurrency scene. Recently, it received approval to hold bitcoins to institutions from the New York Financial Authority.

Before the appearance of Galaxy Digital, PayPal had already considered acquiring BitGo as part of its entry into the world of Bitcoin and cryptocurrencies, but the negotiations did not materialize and the digital payments company ended up ruling out the purchase of BitGo.

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, Galaxy Digital bought BitGo, Forex-News, Forex-News

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