Galaxy Digital in talks to acquire crypto custodian BitGo, reports say

Galaxy Digital, the cryptocurrency merchant bank led by Mike Novogratz, is in active talks to acquire the crypto custodian BitGo. CoinDesk reports, citing its own sources.

In 2020, media reported that the payments giant PayPal planned to acquire the custodian. In December, it emerged that talks collapsed.

Two people familiar with the matter told CoinDesk that the payments company offered $750 million in cash for BitGo.

In March PayPal announced its intention to acquire another provider of infrastructure for storing cryptocurrencies — Curve.

According to CoinDesk’s sources, Galaxy and BitGo are close to finalising a deal.

“Galaxy does not engage in custody services, so the acquisition makes sense,” said one of the publication’s sources.

Details of the deal at this stage are unknown, but it could involve a traditional financial firm.

Galaxy previously invested in the custodian, and Novogratz’s firm also financed BitGo’s rival — Fireblocks.

In January, Galaxy opened a Bitcoin mining division, and later announced plans for the launch of a research arm of its activities.