Home » Amid FTX Fallout, Crypto Custodian BitGo Looks To Raise Funds At A $1.2 Billion Valuation

Amid FTX Fallout, Crypto Custodian BitGo Looks To Raise Funds At A $1.2 Billion Valuation

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Crypto custodian BitGo is in preliminary discussions to raise new funding at a valuation of $1.2 billion, according to sources with knowledge of the company’s thinking.

The development comes as the industry digests the $32 billion bankruptcy of crypto exchange FTX. The bankruptcy saw the company unsuccessfully attempt to bail out sister trading firm Alameda Research, lending billions of dollars in customer deposits.

“Since the dissolution, quite a few companies have reached out for both investment and M&A,” the source said.

Investors began approaching the company in August after a planned $1.2 billion acquisition by Toronto-based Galaxy Digital Holdings collapsed violently. His second source, who has spoken to two venture capitalists and one private equity firm he’s involved in the discussion, provided a figure of $1.2 billion.

Initial sources claim BitGo is not targeting a specific amount and has a healthy balance sheet.

Both sources asked not to be named as they were not authorized to speak publicly on the matter.

CEO Mike Belshe said, “We have publicly stated that we are dealing with the fatigue coming out of Galaxy. That is why we are looking for a strategic partner in the next round, but we are not in the situation where we need it.” An informant said.

The company claims it has no exposure to companies such as FTX, Alameda, Three Arrows Capital and Celsius. Both of these companies went bankrupt this spring when the stablecoin TerraUSD and its sister token Luna collapsed.

In fact, this debacle could benefit qualified custodians such as BitGo, who can capitalize on the appetite for cryptocurrency security among investors. According to Glassnode data, about 100,000 bitcoins worth $1.7 billion were withdrawn from exchanges and stored offline or in cold wallets in the week since the FTX demise.

“There has been an industry-wide flight to safety since the demise of FTX.

Additionally, the company is reportedly setting up a custody system for the remaining funds on its balance sheet, so it may have played a more direct role in FTX’s bankruptcy.

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