BitGo Secures $100 Million Investment for Crypto Custody
BitGo, the cryptocurrency custody company, has announced that it has raised $100 million in a Series C funding round from new crypto investors. This investment brings BitGo’s valuation to an impressive $1.75 billion. The company plans to use the funding to support its global expansion through strategic acquisitions.
BitGo Receives Investment Instead of Compensation for Damages
BitGo’s $100 million investment comes from new investors, rather than as compensation for damages from a breach of a merger agreement. Last year, BitGo intended to sue Galaxy Digital for terminating the merger agreement early without paying the promised $100 million termination fee. This misunderstanding arose from Galaxy Digital’s claim that BitGo failed to provide audited financial statements. Galaxy Digital had previously acquired BitGo for $1.2 billion, but later decided against finalizing the acquisition.
BitGo Seeks Investments Following Collapse of FTX
After the collapse of FTX in November 2022, BitGo began searching for new investors at its current valuation. Many investors approached the company in August, following the failed acquisition by Galaxy Digital. BitGo CEO Mike Belshe expressed a desire for strategic partners but stated that the company was not in a desperate situation.
Hot Take: BitGo’s Funding Boost Fuels Global Expansion
BitGo’s successful funding round and increased valuation demonstrate the growing interest in cryptocurrency custody services. The investment will support BitGo’s expansion efforts and strengthen its position in the market. As the demand for secure cryptocurrency storage continues to rise, BitGo is well-positioned to meet the needs of crypto investors.
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