BitGo lands $1.75 billion valuation after Series C funding round

abdelaziz Fathi

BitGo, a wallet infrastructure provider and digital asset custodian, has secured $100 million in a Series C financing round, a few months after Galaxy Digital called off its proposed $1.2 billion acquisition.

The fresh capital infusion boosts the Palo Alto, California-based company’s valuation to $1.75 billion. BitGo did not disclose who exactly joined in on this funding round. All they’re saying is that it’s some fresh faces – “new, outside strategic investors.”

Mike Belshe, the CEO of BitGo, told Bloomberg that the new funds that are specifically set aside for some big plans including strategic acquisitions and to grow the business with secure and regulated custody, wallet, and infrastructure solutions.

He 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.”

Starting from January 2023, BitGo has been on a roll, with some impressive stats across various metrics. The crypto custodian has welcomed 60% more clients on board, seen a 20% bump in assets under custody (AUC). It also experienced a whopping 200% surge in fiat custody, and witnessed staked assets grow by 40 times.

Beyond its growth metrics, BitGo has been chosen as a trusted partner in many ventures, including handling custody for FTX creditors funds, and they’ve been picked as the distributor for Mt. Gox creditors before.

The good news comes barely two months after a US federal judge relieved Galaxy Digital of any obligation to pay damages following the dismissal of a lawsuit related to its terminated merger with BitGo. The court sided with the crypto lender’s decision to cancel its planned $1.2 billion acquisition, removing the potential financial burden associated with the abandoned tie-up.

The judge determined that Galaxy had a valid reason for terminating the deal, citing BitGo’s provision of “non-compliant” financial documents relating to its financial stability. However, BitGo said it plans to appeal the court’s ruling as it believes that Galaxy wrongfully terminated the agreement and will continue to pursue the same position through the appeals process.

BitGo was seeking about $100 million worth of damages from Mike Novogratz’s crypto investment firm for pulling out of a deal to acquire the institutional crypto custody firm.

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