California-based crypto custodian BitGo has successfully raised $100 million in a Series C funding round, with its valuation now reaching $1.75 billion. The funds will be used to fuel strategic acquisitions and expand the company’s regulated custody, wallet, and infrastructure solutions on a global scale. BitGo’s CEO, Mike Belshe, emphasized the growing demand for regulated custody solutions, not only in the US but also worldwide. The company aims to provide secure and seamless participation in the digital asset ecosystem for institutions, brands, coin foundations, and others.
The platform’s analysis revealed impressive growth for BitGo in various areas. Since the beginning of the year, the company has experienced a 60% increase in newly onboarded clients, a 20% jump in assets under custody (AUC), a 200% surge in fiat custody, and a remarkable 40x growth in staked assets. These figures demonstrate the increasing trust and demand for BitGo’s services in the crypto market.
It’s worth mentioning that Galaxy Digital, the cryptocurrency investment firm led by Mike Novogratz, had previously announced plans to acquire BitGo for $1.2 billion. However, the deal fell through when Galaxy cited BitGo’s failure to provide audited financial statements for 2021 as required. Consequently, BitGo filed a lawsuit against Galaxy, seeking damages exceeding $100 million for what it claims to be an improper repudiation and intentional breach of the merger agreement.
In the midst of these developments, BitGo clarified that it will not proceed with the acquisition of Prime Trust, a company that later filed for Chapter 11 bankruptcy protection in Delaware. This decision ensures that BitGo can focus on its own growth and expansion plans without any additional complications.
The successful Series C funding round and the impressive growth metrics highlight BitGo’s position as a leading crypto custodian in the market. With the newly secured funds, the company is well-equipped to meet the increasing demand for secure and regulated custody solutions, both in the US and globally. As the digital asset ecosystem continues to evolve, BitGo remains committed to providing institutions and individuals with the necessary tools and infrastructure to navigate this exciting landscape.
