BitGo buys NYDIG arm for $42.5M

• BitGo acquired NYDIG’s institutional trading business in a deal worth about US$42.5 million.
• The transaction adds derivatives, structured products, financing and capital-markets services to BitGo’s platform.
• NYDIG will focus on power generation, Bitcoin mining and high-performance computing data centres.

BitGo acquired NYDIG’s institutional trading business in a two-step merger worth about US$42.5 million.

The deal includes about US$7 million in cash and US$35.5 million in BitGo stock, plus potential earnout payments.

“Institutions increasingly want to work with a trusted partner that can support the full lifecycle of digital assets—from custody and trading to financing and settlement,” BitGo CEO and co-founder Mike Belshe said in a statement.

The acquired business serves asset managers, hedge funds, corporates and family offices, and about 30 NYDIG employees will join BitGo.

NYDIG will use the sale to focus on power generation, Bitcoin (CRYPTO:BTC) mining and high-performance computing data centres, with a development pipeline exceeding 3 gigawatts.

BitGo has also expanded beyond custody this year, including its USDS stablecoin, while its shares began trading on the New York Stock Exchange in January.

At the time of reporting, Bitcoin price was $78,066.03.