BitGo Secures $100M Funding, Bringing Valuation to $1.75B
- Cryptocurrency custodian BitGo has raised $100 million in a new Series C funding round.
- The firm is valued at $1.75 billion after receiving funding from new investors based in the US and Asia.
- The funds will be utilized to make strategic acquisitions and expand the firm’s services globally.
- The CEO of BitGo noted that it is “definitely a rough market” due to regulatory uncertainty.
BitGo, a digital asset trust firm that is based in Palo Alto, California, has announced a Series C funding round, and as per CEO Mike Belshe, the new round featured entirely new investors from the United States and Asia. This confirms not very long after the crypto custodian lost in a legal battle against Galaxy Digital, a digital asset management firm.
As per an August 16 report from Bloomberg, BitGo is now valued at $1.75 billion after raising $100 million from unnamed investors in the Series C funding round. It is crucial to note that the funds will be utilized to make strategic acquisitions and expand the firm’s secure and regulated custody, wallet, and infrastructure solutions globally.
Interestingly, BitGo is known for securing clients’ assets by protecting private keys, sometimes in physical vaults. It is currently the custodian for the creditors of the bankrupt crypto exchange FTX, founded by Sam Bankman-Fried, also known as SBF in the crypto sector, along with financial services firm Swan Bitcoin, blockchain developer Mysten Labs Inc., and apparel giant Nike Inc.
On the other hand, the CEO of BitGo noted that it is “definitely a rough market,” adding that his firm’s focus on gaining regulatory licenses and approvals has proved beneficial amid an uncertain time for the crypto sector in the United States. Regulators are currently involved in a debate over whether to classify digital assets as commodities or as securities, with the Securities and Exchange Commission (SEC) emphasizing the latter.
Belshe said that “regulatory safety is just on everybody’s minds right now,” while adding:
“Not only are we seeing growing demand for regulated custody solutions in the United States, but we’re also seeing the demand on a global scale.”
While the BitGo executive refrained from revealing the names of its new investors, Belshe did reveal that some of the investors were not part of the crypto sector. More importantly, the firm’s previous investors include Goldman Sachs Group Inc., DRW Holdings, and Galaxy Digital Ventures.
As reported earlier by Bitnation, BitGo was eyeing the acquisition of Prime Trust but took a U-turn, and the latter has now filed for Chapter 11 bankruptcy.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
