BitGo Secures $100 Million in Series C Funding to Bolster Global Expansion

Cryptocurrency custody pioneer BitGo has successfully concluded a Series C financing round, raising a significant $100 million in fresh capital. The move comes on the heels of a string of disrupted deals involving prominent firms, including Galaxy Digital, led by Michael Novogratz. As per an official announcement made to Cointelegraph on August 16, the funding has propelled BitGo’s valuation to an impressive $1.75 billion.

This influx of funds will play a pivotal role in fueling the firm’s strategic objectives, with a focus on targeted acquisitions and the expansion of the company’s robust and regulatory-compliant custody, wallet, and infrastructure solutions on a global scale. Mike Belshe, the Chief Executive Officer, emphasized the significance of these funds, stating that they will enable the firm to adequately address the surging demand for secure custody services. He also highlighted BitGo’s commitment to empowering institutions and businesses to engage effectively within the ever-evolving landscape of the cryptocurrency industry.

The year 2023 has proven to be one of exceptional growth for BitGo, with an impressive 60% surge in new client onboarding and an astounding 40-fold increase in staked assets. Belshe underlined the significance of this growth, stating, “Not only are we witnessing a mounting demand for regulated custody solutions within the United States, but we are also observing this trend on a global scale.”

Bloomberg’s recent report sheds light on the composition of BitGo’s Series C funding, revealing an entirely fresh influx of investors hailing from the United States and Asia. Remarkably, several backers entered the fold from sectors outside the traditional cryptocurrency domain, as indicated by Belshe.

The company’s investor ecosystem includes notable names such as Goldman Sachs, a renowned American investment bank, and DRW Holdings, a diversified trading entity. Galaxy Digital Ventures, the venture capital arm of Galaxy, was also part of the company’s investor lineup. It is worth noting that Galaxy Digital’s intention to acquire BitGo for $1.2 billion in 2021 culminated in a decision to terminate the deal a year later. This move was attributed to a contractual breach related to BitGo’s failure to furnish specific financial statements.

Legal Battle Unfolds as BitGo Faces Setbacks in Acquisition Endeavors

In a recent turn of events, the cryptocurrency industry witnessed a heated legal dispute between BitGo and Galaxy following the abrupt termination of a planned acquisition. The company filed a lawsuit against Galaxy, alleging improper repudiation and intentional breach of the acquisition agreement. The lawsuit, which sought a staggering $100 million in damages, shed light on the complexities and challenges inherent in the rapidly evolving crypto landscape.

The controversy stemmed from the firm’s intention to acquire Galaxy, a move that was abruptly halted due to alleged breaches of the acquisition agreement. BitGo’s legal team embarked on a legal battle to hold Galaxy accountable for what it perceived as a violation of terms. However, the dispute took an unexpected turn when, in June 2023, a United States court dismissed BitGo’s claims, leaving both parties to grapple with the aftermath.

The legal setback was not the only obstacle BitGo encountered during this period. Just weeks after the Galaxy debacle, BitGo found itself entangled in another acquisition fiasco. On June 22, the company made the surprising announcement of the cancellation of its planned acquisition of Prime Trust, a fintech infrastructure provider. This decision came a mere two weeks after BitGo had shared its non-binding letter of intent to acquire Prime Trust, leaving industry insiders and enthusiasts puzzled over the swift change of course.