Galaxy Digital Acquires Celsius Network-Owned GK8
- Investment firm Galaxy Digital Holdings has confirmed the acquisition deal with GK8, an institutional digital asset self-custody platform.
- GK8 was acquired by Celsius in 2021 for a whopping $115 million but Galaxy did not reveal the amount involved.
- The deal is pending for regulatory approval and CTO and CEO will stay with Galaxy, as per a press statement.
- Mike Novogratz’s firm will acquire GK8’s team of 40 members and an office in Tel Aviv, if the deal goes through.
Galaxy Digital Holdings, an investment firm, has announced the acquisition of GK8, an institutional digital asset self-custody platform that was previously a subsidiary of bankrupt crypto lender, Celsius Network. This marks a huge step forward for the troubled crypto firm, as it is selling its assets so that it can successfully pay back its creditors.
Interestingly, it is also crucial to note that the troubled crypto lender Celsius Network owes around $4.7 billion to its users and CEO Alex Mashinsky has confirmed the debt in the Chapter 11 bankruptcy filing at the US Bankruptcy Court for the Southern District of New York. Additionally, GK8 is one of the firms that is being currently sold to repay the amout that the lender owes.
The deal is pending for approval with the regulatory authorities according to a blog post from GK8 and a press release from Galaxy. However, if the deal goes through, Galaxy will acquire GK8’s team of 40 members including cryptographers and blockchain engineers and an office in Tel Aviv, the largest economy per capita in the Middle East.
“Adding GK8 to our prime offering at this pivotal moment for our industry also highlights our continued willingness to take advantage of strategic opportunities to grow Galaxy in a sustainable manner,” said Mike Novogratz, the CEO of the investment firm.
The billionaire investor who is bullish on Bitcoin (BTC), the world’s biggest crypto coin, stated that this acquisition deal is a “crucial cornerstone” in his firm’s effort to “create a truly full-service financial platform for digital assets, ensuring our clients will have the option to store their digital assets at or separate from Galaxy without compromising versatility and functionality.”
It is also important to note that the founders of GK8, CEO Lior Lamesh and CTO Shahar Shamai, will remain on Galaxy’s team because they will now be responsible for leading the investment firm’s new custodial technologies business.
GK8 rose to popularity when the developers claimed that the platform will work without being connected to the internet which reduces the chances of implementing a hack significantly. The platform offers custody, staking, DeFi, NFT support, tokenization and trading as well.
While Celsius Network acquired GK8 for a whopping $115 million in 2021, it is unclear the amount spent by Novogratz’s firm on the purchase of the firm.
“With the backing of Galaxy, we aim to introduce new and exciting offerings to the industry that showcase a combination of Galaxy’s best-in-class services and GK8’s cryptography, security, and unparalleled R&D skills,” said CEO Lamesh.
The billionaire investor recently predicted that Bitcoin will hit $500,000 but “not in five years” and added that the Federal Reserve chairman Jerome Powell has found “his central banking superpowers” due to which BTC remains bearish.
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.
