Cryptocurrency custody platform BitGo has raised fresh funds after facing a series of terminated deals involving firms including Michael Novogratz’s Galaxy Digital.
BitGo announced to Cointelegraph on Aug. 16 that it had raised $100 million in Series C funding, valuing the company at $1.75 billion.
The newly raised funds will be used for strategic acquisitions and to expand BitGo’s secure and regulated custody, wallet and infrastructure solutions globally.
BitGo CEO Mike Belshe noted that the new funds will help the company meet growing custody demand and provide institutions and companies with the tools to participate in the crypto industry. By 2023, BitGo will see a 60% increase in the number of new customers and a 40-fold increase in staked assets, the company said. Belshe added:
“Not only are we seeing growing demand for regulated custody solutions in the US, but we’re also seeing demand globally.”
According to Bloomberg, BitGo’s Series C funding Featured Brand new investors based in the US and Asia. According to reports, Belshe said that some supporters come from outside the cryptocurrency industry.
BitGo’s previous investors include U.S. investment bank Goldman Sachs, diversified trading firm DRW Holdings and Galaxy Digital Ventures, the venture capital arm of Galaxy. In 2021, Galaxy even planned to acquire BitGo for $1.2 billion, but ultimately terminated the deal a year later. The company alleges that BitGo failed to provide certain financial statements, causing it to breach the contract.
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After the acquisition was terminated, BitGo sued Galaxy for wrongful denial and willful breach of the acquisition agreement. The company is seeking $100 million in damages from Galaxy for breach of the acquisition. In June 2023, BitGo’s lawsuit was rejected by a US court.
Subsequently, BitGo also canceled its acquisition of fintech infrastructure provider Prime Trust on June 22. The deal was called off just about two weeks after BitGo shared its non-binding letter of intent to acquire Prime Trust.
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