Despite challenging market conditions, BitGo secures massive funding as it successfully navigates through the uncertainties in crypto regulations.
On Wednesday, August 16, crypto custodian BitGo announced its plans to raise $100 million at a staggering valuation of $1.75 billion. The company said that it will use these funds for strategic acquisitions as well as to expand its secure and regulated wallet, custody, and other solutions.
BitGo has secured $100M Series C funding.
Trust is not given, it is earned. We believe in delivering it to our clients and the industry. Being a custodial and infrastructure leader is an undertaking, one we have consistently provided for over a decade.
This funding will allow… pic.twitter.com/TlPO7722Ha
— BitGo (@BitGo) August 16, 2023
From January 2023 onwards, BitGo has experienced a 60% surge in newly registered clients and a 20% growth in Assets Under Custody (AUC). Besides, it has also registered a remarkable 200% rise in fiat custody, and an extraordinary 40-fold expansion in staked assets. Notably, BitGo also handles custody services for FTX creditors’ funds under the leadership of John Ray III. Previously, it was serving as the distributor for Mt. Gox creditors as well.
Mike Belshe, the Chief Executive Officer, recognized that the current market is undoubtedly challenging. However, he pointed out that the company’s emphasis on obtaining licenses and adhering to regulations has distinguished it in the midst of a legal environment characterized by uncertainties regarding the classification of digital assets as securities. “Regulatory safety is a top concern for everyone at the moment,” Belshe stated. Speaking further on the matter, Belshe added:
“Not only are we seeing growing demand for regulated custody solutions in the US, but we’re also seeing the demand on a global scale. We are very pleased to announce our $100M Series C for the purpose of meeting this growing need and to provide institutions, brands, coin foundations, and others with secure and seamless participation in the digital asset ecosystem.”
Latest Funding from New Investors
The company, headquartered in Palo Alto, California, secured the funding exclusively from fresh investors, as stated by Belshe. While he refrained from revealing the participants in the round, he did mention that they hailed from both the US and Asia, and some were not from the cryptocurrency sector. Among BitGo’s earlier investors were Goldman Sachs Group Inc., DRW Holdings, and Galaxy Digital Ventures.
The startup’s current valuation significantly exceeds its value in 2021, a period during which Galaxy Digital Holdings intended to acquire the company for $1.2 billion. However, this deal was eventually abandoned.
BitGo’s previous fundraising was in 2017, during which it obtained a Series B funding of $42.5 million. This round was spearheaded by Valor Equity Partners and saw involvement from individuals like former PayPal COO David Sacks, former Remarq CEO Bill Lee, and the trading firm DRW. Notably, the list of earlier investors in the crypto custodian encompasses names like Goldman Sachs, Craft Ventures, and Pantera Capital.
Recently, crypto custodian BitGo decided to cancel the acquisition of Prime Trust, just after a few days of its preliminary agreement.