BitGo raises $100M after losing lawsuit against Galaxy

Cryptocurrency custody level BitGo has raised caller superior aft facing a bid of terminated deals involving firms similar Michael Novogratz’s Galaxy Digital.

BitGo has raised $100 cardinal successful a Series C financing circular bringing the company’s valuation to $1.75 billion, the steadfast announced to Cointelegraph connected Aug. 16.

The recently raised funds volition beryllium deployed to marque strategical acquisitions and grow BitGo’s unafraid and regulated custody, wallet and infrastructure solutions globally.

BitGo CEO Mike Belshe noted that the caller funds volition assistance the steadfast to conscionable the increasing request for custody and supply institutions and companies with tools to enactment successful the crypto industry. So acold successful 2023, BitGo has seen a 60% summation of caller clients arsenic good arsenic 40x maturation successful staked assets, the steadfast said. Belshe added:

“Not lone are we seeing increasing request for regulated custody solutions successful the United States, but we're besides seeing the request connected a planetary scale.”

According to a study by Bloomberg, BitGo’s Series C backing featured wholly caller investors based successful the United States and Asia. Some of the backers came from extracurricular the cryptocurrency industry, Belshe reportedly said.

BitGo’s erstwhile investors see the American concern slope Goldman Sachs, the diversified trading steadfast DRW Holdings and Galaxy’s task superior arm, Galaxy Digital Ventures. In 2021, Galaxy adjacent planned to get BitGo for $1.2 billion, but yet terminated the deal a twelvemonth later. The steadfast cited a breach of declaration related to BitGo’s nonaccomplishment to supply definite fiscal statements.

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Following the termination of the acquisition, BitGo sued Galaxy implicit improper repudiation and intentional breach of the acquisition agreement. The steadfast was seeking $100 cardinal successful damages from Galaxy for the breach of acquisition. In June 2023, BitGo’s claims were dismissed by a tribunal successful the United States.

Subsequently, BitGo besides canceled its acquisition of the fintech infrastructure supplier Prime Trust connected June 22. The woody cancellation came conscionable astir 2 weeks aft BitGo shared its non-binding missive of intent to get Prime Trust.

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