BitGo, a stalwart in the crypto custody business, has hit a significant milestone, securing a massive $100 million in its Series C financing round. This fundraise catapults the company’s valuation to an impressive $1.75 billion. Based in Palo Alto, California, BitGo has grand plans for these funds, eyeing strategic acquisitions and a robust global expansion.
This fundraising news follows a series of events that have kept BitGo in the headlines.
A previously planned $1.2 billion acquisition by Galaxy Digital was set to merge the two giants. However, the deal soured, with Galaxy pointing fingers at BitGo for not delivering audited financial statements for 2021 as per their agreement. BitGo didn’t take this lying down and retaliated with a lawsuit against Galaxy, seeking over $100 million in damages. This merger was initially announced back in May 2021.
More recently, BitGo is on the acquiring end, having reportedly reached a preliminary agreement to take over Prime Trust, a crypto custody startup based in Nevada. But fate had other plans, and the deal crumbled. Prime Trust subsequently filed for Chapter 11 bankruptcy protection earlier this week.
Despite these challenges, BitGo has been on an upward trajectory. The company boasts a 60% increase in new clients, a 20% growth in assets under custody, a whopping 200% surge in fiat custody, and significant growth in staked assets.
Additionally, they recently unveiled the Go Network, their instant settlement platform. The fundraising environment has been challenging, especially for crypto firms. BitGo’s last fundraiser was in 2017, where they secured a $42.5 million Series B round. Despite the challenges, BitGo has stood out, proving its mettle in the competitive crypto custody and security arena, rivaling the likes of Fireblocks, Copper, and Anchorage Digital.
BitGo’s recent fundraising is not just about the money; it’s a testament to the company’s resilience, adaptability, and vision for the future of crypto custody.
