Galaxy Digital, a financial services firm headed by Michael Novogratz, has agreed to buy crypto custody firm BitGo f0r $1.2 billion in stock and cash, according to an announcement today.
BitGo shareholders will get $33.8 million of newly issued shares of Galaxy Digital common stock and approximately $265 in cash, per the terms of the deal.
"The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalise digital asset ecosystems and blockchain technology," said Novogratz.
Galaxy Digital currently holds over $40 billion in assets under custody, and serves over 150 exchanges and 400 institutional investments. BitGo, in comparison, processes over 30 billion transactions per month, and supports the custody of over 400 cryptocurrencies.
Looking to the future
Galaxy has claimed it will gain about 400 new global clients from the purchase. What's more, the company is set to undergo a "domestication process," which it hopes will eventually lead to a US listing later in 2021.
"The power of the technology, solutions, and people we will have as a result of this acquisition will unlock unique value for our clients and drive long-term growth for our combined business," Novogratz added.
The purchase also allows Galaxy Digital to expand geographically, with the addition of a West Coast office in San Fransisco.
Elsewhere, Galaxy Digital has thrown its hat into the ring to be the US' first Bitcoin ETF. On April 12 of this year, the firm filed its application to the SEC to run an ETF in the NYSE Area, an exchange that supports trades for both stocks and options. Galaxy Digital has joined other high profile firms—like Anthony Scaramucci's Skybridge Capital—in pursuit of the SEC's permission to establish an ETF in the US.
Later this week, Novogratz will be speaking at this year's Ethereal Summit, powered by Decrypt.