Galaxy Digital Holdings, founded by former Goldman Sachs fund manager Mike Novogratz, has agreed to buy the cryptocurrency storage service BitGo.
According to the press release, this will help Galaxy Digital consolidate its status as "the world's leading full-scale platform for institutions seeking access to the cryptocurrency economy, which will offer an unparalleled variety of products and services in the industry."
"The acquisition of BitGo establishes Galaxy Digital as a one – stop service for institutions and significantly accelerates our mission to institutionalize the digital asset ecosystem and blockchain technology," Novogratz said.
BitGo was founded in 2013 and specializes in regulated cryptocurrency storage solutions. Today, the company holds more than $40 billion in assets, serves more than 150 exchanges and 400 institutional clients, conducting 30 billion transactions per month.
Under the terms of the deal, Galaxy Digital will pay $1.2 billion, of which $265 million in traditional currency, and the remainder with 33.8 million of its newly issued common shares. All BitGo employees will remain in their current positions after joining Galaxy Digital, and the firm's founder, Mike Belshe, will become deputy CEO and a member of the board of directors. The transaction is expected to close in the fourth quarter of 2021.