BitGo Secures $100 Million Funding Round and Expands Services Globally
The Palo Alto-based security infrastructure and custodian firm, BitGo, has successfully secured a $100 million Series C funding round. This recent funding has placed the company’s valuation at $1.75 billion. Despite regulatory differences, BitGo is already regulated in 50 countries and has seen significant growth in its client base and assets under custody.
Key Points:
- BitGo witnessed a 60% increase in clients and a 20% growth in assets under custody in 2023.
- The company’s staked assets have risen 40 times.
- The funding will be used to develop and expand BitGo’s services globally.
BitGo recognizes the growing demand for regulated custody solutions not only in the US but also on a global scale. The funds will enable institutions, brands, and coin foundations to securely participate in the digital asset ecosystem.
BitGo Faces Legal Challenges in Recent Acquisitions
BitGo’s journey hasn’t been without obstacles. On June 12, the company lost a lawsuit to Galaxy Digital, one of its early investors, for terminating an acquisition deal. However, the court ruled in favor of BitGo, stating that Galaxy Digital had a “clean termination right.”
Additionally, BitGo announced and then halted its plan to acquire Prime Trust, a crypto custody platform, within two weeks. The reasons behind this abrupt change in acquisition plans remain unknown.
Hot Take
BitGo’s successful funding round and expansion plans demonstrate the growing demand for regulated custody solutions in the cryptocurrency market. However, the recent legal challenges and acquisition hiccups show that navigating the crypto industry can be unpredictable and full of surprises.
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