- BitGo has secured $100 million in a Series C funding round.
- The crypto custody solutions provider is now valued at $1.75 billion.
- Based in Palo Alto, California, the company plans to use the money for strategic acquisitions and global expansion.
BitGo, a wallet infrastructure provider and digital asset custodian, has secured $100 million in a Series C financing round, bolstering its valuation to $1.75 billion. The Palo Alto, California-based company stated that the fresh capital would finance “strategic acquisitions and expand its secure and regulated custody, wallet, and infrastructure solutions globally,’’ according to two people familiar with the matter and fundraising materials.
BitGo is a digital asset financial services leader that provides institutional clients with security, custody, and liquidity solutions. The company is currently the custodian for creditors of the bankrupt crypto firm FTX. The custodian was also previously chosen as the distributor for creditors of bankrupt Mt. Gox.
However, this development of the fundraising comes after BitGo’s planned $1.2 billion acquisition by Galaxy ended in acrimony. In August 2022, Galaxy said it would scrap its acquisition of BitGo, blaming the crypto custody firm’s failure to deliver audited financial statements for 2021 in line with an agreement.
Last September, BitGo retaliated by filing a lawsuit against Galaxy seeking more than $100 million in damages and alleging that Galaxy intentionally breached the pair’s merger agreement.
The judge determined that Galaxy had a valid reason for terminating the deal, citing BitGo’s provision of “non-compliant” financial documents relating to its financial stability. However, BitGo said it plans to appeal the court’s ruling as it believes Galaxy wrongfully terminated the agreement and will continue pursuing the same position through the appeals process.
BitGo Registers Growth Amid A Dynamic Market Environment
Mike Belshe, the CEO of BitGo, told Bloomberg that:
‘’ Not only are we seeing growing demand for regulated custody solutions in the US, but we’re also seeing the demand on a global scale. We are delighted to announce our $100M Series C to meet this growing need and to provide institutions, brands, coin foundations, and others with secure and seamless participation in the digital asset ecosystem.’’
Amid a dynamic market environment, BitGo has registered growth across the board since the beginning of the year. The crypto custodian has welcomed 60% more clients on board and seen a 20% bump in assets under custody (AUC). It also experienced a whopping 200% surge in fiat custody and witnessed staked assets grow by 40 times.
BitGo’s recent funding success comes on the heels of the launch of its Go Network, empowering institutions to trade and settle digital assets and fiat currencies around the clock from secure custody. According to the announcement, with a robust presence as a premier regulated custodian in more than 50 countries, BitGo consistently handles 20% of all on-chain Bitcoin transactions by value.
