BitGo Raised $100M After The Lawsuit Against Galaxy

In a Series C funding round, BitGo successfully raised $100 million, elevating the company’s overall valuation to $1.75 billion.

The fresh fund acquired on August 16 will be utilized to pursue strategic acquisitions. It will also be used to expand BitGo’s range of secure, regulated custody services, wallets, and infrastructure solutions globally.

The company is one of the oldest original cryptocurrency enterprises, boasting a history of more than a decade. BitGo has experienced significant expansion in its client base and assets under management (AUM), leading to substantial growth. Additionally, there has been a remarkable surge in staked assets and a notable 200% rise in fiat custody.

BitGo has secured $100M Series C funding.

Trust is not given, it is earned. We believe in delivering it to our clients and the industry. Being a custodial and infrastructure leader is an undertaking, one we have consistently provided for over a decade.

This funding will allow… pic.twitter.com/TlPO7722Ha
— BitGo (@BitGo) August 16, 2023

Mike Belshe, the CEO of BitGo, stated about the fundraising:

“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.”

BitGo’s Past Troubles

The firm’s previous backers included the American investment powerhouse Goldman Sachs, the versatile trading company DRW Holdings, and Galaxy Digital Ventures, a branch of Galaxy.

In 2021, Galaxy Digital Ventures had even formulated plans to purchase BitGo at a valuation of $1.2 billion. However, this agreement was ultimately voided a year later. The reason for the termination revolved around a contractual violation by BitGo, involving their failure to furnish specific financial statements.

Upon scrapping the acquisition deal, BitGo initiated legal action against Galaxy. The company accused Galaxy Digital of unjustifiable disavowal and intentional infringement of the acquisition accord. The firm was pursuing damages amounting to $100 million from Galaxy, seeking reparation for the breach in the acquisition arrangement. However, in June 2023, a United States court dismissed BitGo’s claims.

Late yesterday, BitGo filed a lawsuit against Galaxy Digital seeking damages of more than $100 million arising from Galaxy’s improper repudiation and intentional breach of its merger agreement with BitGo.
— BitGo (@BitGo) September 13, 2022

After this, the firm also decided to rescind its intended acquisition of the fintech infrastructure provider Prime Trust on June 22.

This deal reversal transpired around a fortnight after the firm revealed its non-binding expression of interest in acquiring Prime Trust. The troubled company is allegedly considering a workforce reduction of up to 75% due to considerable financial and regulatory difficulties.

About BitGo

BitGo is a digital asset trust and security company providing institutional investors with secure custody, liquidity, and infrastructure solutions. Founded in 2013, it is the leader in the custody space, processing 20% of all global Bitcoin transactions by value.

The company offers a variety of products and services, including multi-signature wallets, hot and cold storage, and insurance. It is headquartered in Palo Alto, California, and has offices in over 50 countries.