Cryptocurrency custody platform BitGo has secured fresh funding of $100 million in a Series C funding round, as announced on August 16. This funding has resulted in BitGo's valuation reaching $1.75 billion. The company has faced a series of deal closures, including with firms like Michael Novogratz's Galaxy Digital.
The raised capital will serve multiple purposes for BitGo, including strategic acquisitions and the expansion of its secure and regulated custody, wallet, and infrastructure solutions on a global scale. According to BitGo CEO Mike Belshe, these funds will enable the company to meet the surgery demand for custody services and provide institutions and businesses with the necessary tools to effectively participate in the cryptocurrency industry. The company projects a 60% increase in new customers and a 40-fold growth in staked assets by 2023.
Participation in the Series C funding round reportedly came from new investors from both the United States and Asia, including those from outside the cryptocurrency sector. BitGo's previous investors include major players like Goldman Sachs, DRW Holdings, and Galaxy Digital Ventures. Notably, Galaxy Digital Ventures had intended to acquire BitGo for $1.2 billion in 2021, but this deal was later terminated due to alleged issues regarding financial statements.
After the acquisition's termination, BitGo initiated legal action against Galaxy for wrongful denial and breach of the acquisition agreement, seeking $100 million in damages. However, a US court dismissed BitGo's lawsuit in June 2023. Subsequently, BitGo also canceled its plan to acquire fintech infrastructure provider Prime Trust in late June, just two weeks after sharing its non-binding letter of intent for the acquisition.
