Cryptocurrency custody platform BitGo raises $100M in funding round

New funds to be used for acquisitions and global expansion

Cryptocurrency custody platform BitGo has announced that it raised $100 million in a Series C financing round. The funding brings the company's valuation to $1.75 billion. According to BitGo CEO Mike Belshe, the newly raised funds will be used to make strategic acquisitions and expand the company's secure and regulated custody, wallet, and infrastructure solutions globally.

Meeting the growing demand for custody

The funds will also help BitGo meet the growing demand for custody services, giving institutions and companies the tools they need to participate in the cryptocurrency industry. BitGo has already seen a 60% increase in new clients and 40x growth in staked assets so far in 2023.

Series C funding attracts new investors

BitGo's Series C funding round included entirely new investors from the United States and Asia. Some of these investors are from outside the cryptocurrency industry, according to BitGo CEO Mike Belshe.

Terminated deals with Galaxy Digital and Prime Trust

In 2021, BitGo planned to be acquired by Galaxy Digital for $1.2 billion. However, the deal was terminated due to a breach of contract related to BitGo's failure to provide certain financial statements. BitGo sued Galaxy over improper repudiation and breach of the acquisition agreement, seeking $100 million in damages. In June 2023, BitGo's claims were dismissed by a US court.

BitGo also canceled its acquisition of fintech infrastructure provider Prime Trust on June 22, just two weeks after announcing its intent to acquire the company.

Disclaimer: This article is for informational purposes only and should not be taken as investment advice. The writer and The Guardian are not responsible for any financial losses incurred as a result of investing in cryptocurrency.