Galaxy Digital Announces Its Acquisition of BitGo

Assets management company Galaxy Digital Holdings Ltd. recently announced its acquisition of BitGo, a leading digital asset financial services provider, for a total sum of around $1.2 billion.

According to the official press release, the latest acquisition will enable Galaxy Digital to be a leading global full-service platform for institutions who seek access to the crypto economy, offering an unparalleled breadth of industry-leading products and services at scale.

The transaction has been approved by the boards of directors of both Galaxy Digital and BitGo. The acquisition is expected to close in the fourth quarter of 2021, subject to approval by Galaxy Digital's shareholders of the domestication of Galaxy Digital as a Delaware corporation and the internal restructuring described below, as well as certain related matters and other acquisition-related closing conditions and regulatory approvals.

Under the terms of the agreement, Galaxy Digital should retain substantially all current BitGo employees and enter into employment agreements with key members of the management team. Upon closing Mike Belshe will join as Deputy CEO of Galaxy Digital and will become a member of the company's Board of Directors.

BitGo's product suite is complementary to Galaxy Digital's existing offerings across Asset Management, Trading, Investment Banking, and Mining. The combined business will be uniquely positioned to serve the entirety of clients' financial services needs, whether they are storing assets or transacting. Galaxy Digital believes being best equipped to meet evolving client needs will be the defining factor for industry leadership.

As Fazzaco reported earlier, BitGo has gained a new license to operate as an independent Qualified Custodian under New York State Banking Law​. The company can operate as a Limited Purpose Trust Company chartered by the New York Department of Financial Services (NYDFS).