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BitGo: crypto company receives a $100 million investment

BitGo, the cryptocurrency custody company, has secured a new $100 million investment. As of today, its valuation amounts to $1.75 billion. 

BitGo and the new $100 million investment for the crypto custody company

Crypto custody company, BitGo, revealed that it has secured $100 million from a Series C funding round from new crypto investors

BitGo’s other clients include financial services company Swan Bitcoin, blockchain/DLT company Mysten Labs Inc. and clothing company Nike Inc.

Not only that, this amount has helped to raise BitGo’s valuation, which, as of today, is worth an impressive $1.75 billion

The crypto custody company plans to use the funding obtained from new crypto investors for its global expansion, including through strategic acquisitions

This important milestone comes in the same year that BitGo celebrated its 10-year anniversary in April 2023

BitGo: $100 million as crypto investment instead of compensation for damages

This $100 million was obtained today by BitGo as an investment in the crypto company, instead of as compensation for damages from Galaxy Digital for breaching the merger agreement

Basically, last year, BitGo had declared its intention to sue Galaxy Digital for its decision to terminate the merger agreement early, without paying the $100 million termination fee promised in March 2022. 

At the same time, Galaxy Digital allegedly stated that BitGo itself would not provide audited financial statements for 2021, by 31 July 2021 to be precise, which was part of the acquisition agreement. 

This misunderstanding stems from the fact that in May 2021, Galaxy Digital had claimed to have acquired BitGo, investing $1.2 billion. This was a revelation of the moment, as this represented the first evera cquisition over $1 billion in the crypto sector. 

Yet, after years, it seems that Mike Novogratz’s company no longer wanted to finalise the acquisition.

The search for investments after the collapse of FTX

As early as last November 2022, the month in which the collapse of FTX completely affected the crypto market, BitGo was already looking for its crypto investors to come in at its current valuation. 

Indeed, in Forbes, a source close to BitGo would have confirmed that already at that time, many investors had started approaching the company in August, after the failure of the planned acquisition by Galaxy Digital Holdings, 

Another source reportedly said that BitGo CEO Mike Belshe had said the following publicly:

“we have deal fatigue coming out of Galaxy. So we’re looking for strategic partners in the next round, but we’re not in a situation where we need it.”