Key facts
- BitGo has acquired NYDIG's institutional trading business.
- The acquisition enhances BitGo's offerings in derivatives, structured products, and financing.
- Around 30 employees from NYDIG's institutional trading business have joined BitGo.
- BTGO stock experienced a price increase following the acquisition announcement.
- BitGo recently obtained a VASP license from South Korea's Financial Intelligence Unit.
Crypto custodian BitGo announced the completion of its acquisition of NYDIG's institutional trading business and related assets. This strategic move is expected to bolster BitGo's capabilities in derivatives, structured products, and financing, positioning it as a more comprehensive digital asset infrastructure provider for institutional investors such as asset managers, hedge funds, corporates, and family offices.
Approximately 30 employees from NYDIG's institutional trading division have joined BitGo as part of the transaction. Mike Belshe, CEO and co-founder of BitGo, stated that the acquisition will enable the company to serve a broader range of sophisticated clients seeking a trusted partner for the full lifecycle of digital assets.
Meanwhile, NYDIG plans to concentrate its resources on its core businesses, including power generation, bitcoin mining, and high-performance computing data center development. The acquisition has had a positive impact on BitGo's stock, with BTGO closing up 1.99% on Thursday and extending gains in after-hours trading. The stock has seen a significant rally of over 44% in the past month.
In other recent developments, BitGo secured a Virtual Asset Service Provider (VASP) license from South Korea's Financial Intelligence Unit, marking it as the first foreign firm to receive a direct license in the country. Bitcoin prices have also seen an uptick, trading over 1% higher in the last 24 hours.