BitGo Acquires NYDIG Institutional Trading Business for Approximately $42.5 Million

BitGo announced the completion of its acquisition of NYDIG's institutional trading business, executed through a two-step merger with a total consideration of approximately $42.5 million, including $7 million in cash and approximately $35.5 million in BitGo stock. About 30 NYDIG employees transitioned with the business, and the deal also includes an Earnout provision tied to revenue milestones.

The business provides derivatives, structured products, financing, and capital markets solutions to asset managers, hedge funds, corporations, and family offices. BitGo CEO Mike Belshe stated that institutional clients increasingly seek trusted partners capable of supporting the full lifecycle of digital assets, encompassing custody, trading, financing, and settlement.

For NYDIG, the sale allows it to focus on power generation, Bitcoin mining, and high-performance computing data center operations, which the company says has a development pipeline exceeding 3 gigawatts. BitGo listed on the New York Stock Exchange this year at a valuation of approximately $2 billion and has launched the USDS stablecoin.

[ChainCatcher]