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The CEO of Galaxy Digital, Mike Novogratz is now in favor of purchasing crypto custodian BitGo inc. in cash and stock. The transaction is valued at about $1.2 billion. Settling up for $265 million in cash and issuing 33.8 million shares to finance the investment.
Galaxy’s CEO Favours Crypto Custody Purchase in Cash
Galaxy agreed to pay $265 million in cash and issue 33.8 million shares to finance the acquisition. The deal widens Galaxy’s contribution and geographic reach. BitGo shareholders will own 10% of the company. Novogratz, Galaxy’s New York-based chief executive officer and founder mentioned;
“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,” in a statement.
The digital asset trading and finance, BitGo was founded by Mike Belshe, in 2013. Belshe has previously worked with Google’s Chrome and joined Galaxy as a deputy Chief Executive Officer in Galaxy Digital. He will become a member of the company’s board of directors.
In a release, 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.”
BitGo, The Second High-Profile Acquisition
According to a press release,
“BitGo, with over 400 institutional clients, has more than $40 billion in assets under custody and serves over 150 exchanges. The company processes roughly 30 billion transactions per month and supports the custody of more than 400 coins and tokens.”
BitGo is the succeeding high-profile addition in the crypto space in the present time. From the latest, Coinbase global Inc. has purchased a data analytics and trade execution platform, Skew that focuses on cryptocurrency derivatives.
It is observed that in the crypto-sphere the number of institutional and retail investors has multiplied. Investors are taking great interest amid a red hot wave in prices of digital assets.