Cryptocurrency custody platform BitGo has recently secured $100 million in a Series C financing round, bringing the company’s valuation to $1.75 billion. The funds will be used to make strategic acquisitions and expand BitGo’s secure and regulated custody, wallet, and infrastructure solutions globally.
BitGo CEO Mike Belshe expressed the company’s enthusiasm for meeting the growing demand for custody solutions and providing institutions and companies with the necessary tools to participate in the crypto industry. BitGo has experienced a 60% increase in new clients and a 40x growth in staked assets so far in 2023, reflecting the increasing demand for regulated custody solutions on both a national and international scale.
The Series C funding for BitGo featured entirely new investors from the United States and Asia. Interestingly, some of these investors did not come from the cryptocurrency industry, signaling broader interest in the potential of digital assets.
BitGo has had a tumultuous past when it comes to funding and acquisitions. In 2021, Galaxy Digital Ventures, an arm of Michael Novogratz’s Galaxy Digital, planned to acquire BitGo for $1.2 billion. However, the deal was eventually terminated due to a breach of contract related to BitGo’s failure to provide certain financial statements. This resulted in BitGo suing Galaxy over the improper repudiation and intentional breach of the acquisition agreement, seeking $100 million in damages. However, BitGo’s claims were dismissed by a court in the United States.
Further complications arose as BitGo also canceled its acquisition of fintech infrastructure provider Prime Trust. The cancellation came just two weeks after BitGo expressed its intent to acquire Prime Trust, marking another setback in the company’s acquisition efforts.
Despite these challenges, BitGo remains resilient, securing significant funding through its Series C round. The company’s ability to attract new investors outside the cryptocurrency industry highlights the growing recognition of digital assets’ potential. With the newly raised capital, BitGo is well-positioned to strengthen its position as a leading cryptocurrency custody platform and expand its services globally.
The demand for secure and regulated custody solutions is only expected to increase in the coming years, particularly as institutional investors continue to explore opportunities in the crypto space. BitGo’s ability to cater to this demand and provide reliable infrastructure for storing and managing digital assets positions it as a key player in the industry.
As the crypto market continues to evolve, BitGo’s strategic acquisitions and expansions will play a crucial role in enhancing the company’s capabilities and meeting the evolving needs of its clients. With its latest funding round, BitGo is poised for growth and aims to solidify its position as a trusted partner for institutions and companies venturing into the world of cryptocurrencies.