BitGo raises $100 million at $1.75 billion valuation

The crypto custodian BitGo closed a financing round of $100 million, valuing the company at $1.75 billion. Bloomberg reports.

According to BitGo chief executive Mike Belshe, the funds were raised entirely from new investors. He declined to name specific names, but noted that the sponsors are based in the United States and Asia, and some came from outside the crypto industry.

The funding will be used for strategic deals, two of which are already underway, the BitGo chief said.

He also acknowledged there are “certain difficulties” in the market, referring to regulatory and legal framework issues.

But Belshe stressed that the company’s focus on licensing and regulation has helped it stand out amid uncertainty in the digital-asset space.

Among the platform’s cryptocurrency custody clients are creditors of the collapsed FTX, the financial company Swan Bitcoin, the Mysten Labs development team and the Nike sports brand.

In early June BitGo entered into a preliminary agreement to acquire 100% of Prime Core Technologies, which includes Prime Trust. Subsequently, the custodian declined to acquire the latter.

Back in August 2022, Galaxy Digital, the cryptocurrency merchant bank led by Mike Novogratz, pulled the deal to acquire BitGo. Subsequently, the custodian filed suit against the partner that did not materialize, alleging the decision was made in haste.