BitGo Secures $100M Funding for Crypto Expansion

BitGo has raised new capital following the termination of several partnerships with companies such as Michael Novogratz’s Galaxy Digital.

BitGo announced that it has raised $100 million in Series C funding, increasing the company’s valuation to $1.75 billion.

The newly raised funds will be used for strategic acquisitions and the global expansion of BitGo’s secure and regulated custody, wallet, and infrastructure solutions.

BitGo’s chief executive officer, Mike Belshe, stated that the new funds will enable the company to satisfy the growing demand for custody and provide institutions and businesses with the means to participate in the cryptocurrency industry.

“Not only are we seeing growing demand for regulated custody solutions in the United States, but we’re also seeing the demand on a global scale.”

BitGo has reported a 60% increase in new clients and a 40x increase in staked assets thus far in 2023.

According to a Bloomberg report, BitGo’s Series C funding was comprised wholly of new investors from the United States and Asia.

According to Belshe, some of the investors originated from outside the cryptocurrency industry. Former investors in BitGo include Goldman Sachs, DRW Holdings, and Galaxy Digital Ventures, the venture capital subsidiary of Galaxy.

Galaxy intended to acquire BitGo for $1.2 billion in 2021, but the transaction fell through a year later. BitGo’s failure to provide specific financial statements was cited as a breach of contract by the firm.

BitGo filed a lawsuit against Galaxy for unlawful repudiation and intentional breach of the acquisition agreement following the termination of the acquisition.

The company sought $100 million in damages from Galaxy for breaching the acquisition agreement. In June 2023, a court in the United States dismissed BitGo’s claims.

BitGo subsequently canceled its June 22 acquisition of fintech infrastructure provider Prime Trust. Approximately two weeks after BitGo’s non-binding letter of intent to acquire Prime Trust, the transaction was canceled.