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Galaxy Digital Reportedly in Talks to Purchase Crypto Custodian BitGo

UTC by Steve Muchoki · 2 min read
Galaxy Digital Reportedly in Talks to Purchase Crypto Custodian BitGo
Photo: Depositphotos

In the recent past, Galaxy Digital has made a row of moves that indicate an elevated focus on institutional cryptocurrency investors.

After PayPal Holdings Inc (NASDAQ: PYPL) failed to finalize the BitGo acquisition last year, Galaxy Digital, a diversified financial service provider and investment management innovator, is reportedly in talks with BitGo for an acquisition. According to news outlet Coindesk, four people close and familiar with the matter confirmed the ongoing talks between the two parties.

“Galaxy does not do custody so it makes sense to bring that in-house,” one of the sources told Coindesk. Should the rumors be true, then Galaxy Digital could be speculating for a spectacular time ahead in the digital asset and cryptocurrency market.

Galaxy Digital and Its Plans for BitGo

The firm has in the recent past made moves that indicate an elevated focus on institutional cryptocurrency investors. Last week on Friday, the company announced the appointment of Michael Daffey, former Partner, Chairman of the Global Markets Division, and member of the Management Committee at Goldman Sachs, as a Senior Advisor and Chair of the Board of Directors of Galaxy Digital, effective September 1, 2021.

“We’re excited to welcome such an experienced and respected leader of Michael’s caliber to the firm as a Senior Advisor and Board member. Michael’s leadership of Goldman Sachs’ Global Markets businesses through several cycles of growth, innovation, and transformation, as well as his insights and relationships, will be invaluable to Galaxy Digital as we facilitate the institutionalization of cryptocurrencies as an asset class,” noted Michael Novogratz, founder, and CEO of Galaxy Digital.

The New York-based recently reported its preliminary assets under management, whereby the figures for the Galaxy Digital Asset Management (“GDAM”) came in at $1,275.0 million as of March 31, 2021.

Elsewhere, BitGo is an institutional digital asset custodian platform that provides users with secure and easy-to-use trading tools. The firm was founded back in 2013 by Mike Belshe and Ben Davenport. In its history of operations, BitGo has evolved to a full service ecosystem that helps users securely store their digital assets. Especially now that institutional investors have shown great interest in the cryptocurrency market to hedge against the deflationary fiat currencies.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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