BitGo raises $100M after losing lawsuit against Galaxy

Cryptocurrency custody platform BitGo has raised contemporary capital after dealing with a sequence of terminated offers involving companies like Michael Novogratz’s Galaxy Digital.

BitGo has raised $100 million in a Sequence C financing spherical bringing the corporate’s valuation to $1.75 billion, the agency introduced to Cointelegraph on Aug. 16.

The newly raised funds might be deployed to make strategic acquisitions and increase BitGo’s safe and controlled custody, pockets and infrastructure options globally.

BitGo CEO Mike Belshe famous that the brand new funds will assist the agency to fulfill the rising demand for custody and supply establishments and corporations with instruments to take part within the crypto business. To date in 2023, BitGo has seen a 60% enhance of recent purchasers in addition to 40x progress in staked belongings, the agency stated. Belshe added:

“Not solely are we seeing rising demand for regulated custody options in america, however we’re additionally seeing the demand on a worldwide scale.”

In keeping with a report by Bloomberg, BitGo’s Sequence C funding featured completely new traders primarily based in america and Asia. A number of the backers got here from exterior the cryptocurrency business, Belshe reportedly stated.

BitGo’s earlier traders embrace the American funding financial institution Goldman Sachs, the diversified buying and selling agency DRW Holdings and Galaxy’s enterprise capital arm, Galaxy Digital Ventures. In 2021, Galaxy even deliberate to accumulate BitGo for $1.2 billion, however ultimately terminated the deal a yr later. The agency cited a breach of contract associated to BitGo’s failure to offer sure monetary statements.

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Following the termination of the acquisition, BitGo sued Galaxy over improper repudiation and intentional breach of the acquisition settlement. The agency was looking for $100 million in damages from Galaxy for the breach of acquisition. In June 2023, BitGo’s claims have been dismissed by a court docket in america.

Subsequently, BitGo additionally canceled its acquisition of the fintech infrastructure supplier Prime Belief on June 22. The deal cancellation got here nearly two weeks after BitGo shared its non-binding letter of intent to accumulate Prime Belief.

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