Key facts
- BitGo acquired NYDIG's institutional trading business for approximately $42.5 million.
- The deal involves $7 million in cash and $35.5 million in BitGo stock, plus earnouts.
- The acquired unit provides derivatives, structured products, financing, and capital-markets solutions.
- NYDIG will now concentrate on Bitcoin mining and data center operations.
- The acquisition aims to offer a full lifecycle of digital asset services under one roof.
BitGo has acquired the institutional trading business of NYDIG for approximately $42.5 million, structured as a two-step merger. The deal includes $7 million in cash and $35.5 million in BitGo stock, with additional earnout provisions. This acquisition integrates derivatives, structured products, financing, and capital-markets solutions into BitGo's existing custody, settlement, and wallet infrastructure, aiming to provide a comprehensive service for institutional clients like asset managers, hedge funds, and family offices.
For NYDIG, the divestiture allows the company to sharpen its focus on its power generation, Bitcoin mining, and high-performance computing (HPC) data center business, which has a development pipeline exceeding 3 gigawatts. NYDIG CEO Tejas Shah noted the trading unit's complementarity to BitGo's infrastructure and highlighted the HPC opportunity as a significant growth area.
BitGo CEO Mike Belshe stated that institutions increasingly seek a single trusted partner for the full lifecycle of digital assets. The acquisition is expected to scale BitGo's trading capabilities and bring in an experienced team. This move follows BitGo's NYSE IPO, which valued the company at around $2 billion, and a subsequent period of AI-driven layoffs where it cut about 15% of its staff. BitGo has also expanded into stablecoins with its USDS token.