Cryptocurrency custody firm BitGo has successfully raised $100 million through a Series C funding round from new crypto investors, resulting in an elevated valuation of $1.75 billion. The investment comes as part of BitGo’s expansion plans and strategic acquisitions initiatives.
This development marks a significant milestone for BitGo, coinciding with its 10-year anniversary in April 2023. The company’s client base includes notable entities such as Swan Bitcoin, Mysten Labs Inc., and even Nike Inc.
This $100 million influx is unique in that it wasn’t obtained as compensation for damages. Earlier, BitGo had initiated a legal battle against Galaxy Digital, citing a breach of the merger agreement and seeking a $100 million termination fee. The disagreement arose when Galaxy Digital, which had announced a $1.2 billion acquisition of BitGo in May 2021, decided not to proceed with the acquisition, citing concerns over BitGo’s audited financial statements for 2021.
Amidst these legal wranglings and the backdrop of the FTX collapse in November 2022, BitGo began searching for crypto investors willing to invest at its current valuation. This pursuit was met with a positive response, as many investors expressed interest in partnering with the company after Galaxy Digital’s acquisition plans faltered.
BitGo’s successful fundraising efforts come at a time when the cryptocurrency custody sector is experiencing heightened attention due to the increasing adoption of digital assets by institutional and retail investors alike. As BitGo navigates this terrain with its freshly acquired capital, its plans for global expansion and strategic acquisitions will be closely watched by industry observers.
BitGo’s ability to secure substantial funding demonstrates the enduring investor interest in the cryptocurrency space and the underlying belief in the potential for growth and innovation within the sector. With regulatory landscapes evolving and cryptocurrency adoption continuing to gain traction, the coming months will offer valuable insights into how BitGo leverages its resources to drive its strategic agenda forward.