Galaxy Digital, the crypto financial services company run by Michael Novogratz, seems to have serious conversations with BitGo about acquiring it. BitGo is a US-regulated crypto custody specialist. As of now, it is only a rumor, as both companies have declined to comment.
In 2020, BitGo was also rumored to have been in talks with PayPal about being acquired by it, but no final deal was reached, despite the fact that it was said that PayPal offered as much as $750 million in cash. In the end, PayPal bought Curv, a different crypto custody company.
“Galaxy does not do custody so it makes sense to bring that in-house,” revealed one of the sources.
Since crypto started enjoying the current boom in late 2020, custody firms have also become highly popular since they represent an important part of the institutionalization of digital asset trading.
But BitGo is also one of the custodians that Goldman Sachs has under consideration for its wealth fund that will offer bitcoin to rich investors.
Galaxy Digital divulged that in Q4, the income from its trading business had grown by 842% to $238.7 million, while Novogratz confirmed that the firm was actively preparing for a US listing in Q3 or Q4 of this year.
BitGo has raised $69.5 million in six funding rounds, which have also included investments from Galaxy Digital.
Source: Coindesk.com