BitGo Company disclosed that it has completed the acquisition of the trading business of NYDIG institution. This transaction has integrated the relevant teams and institutional customer relationships into BitGo, and also adds derivatives, financing, and capital market services to its offerings in addition to custody, settlement, and wallet services.
The transaction consideration is approximately $42.5 million.
Regulatory documents show that this transaction adopts a two-step merger structure, with a total consideration of approximately $42.5 million. Of this amount, $7 million is in cash, and about $35.5 million is paid in BitGo shares.
The transaction also includes a phased payment arrangement. If one revenue target is met, BitGo will pay an additional $10 million in cash; if a second target is achieved, there may be an additional payment of up to $5 million in cash and additional shares as well. For employees who transfer over, the agreement also includes retention incentives.
Merged with approximately 30 employees and institutional clients
BitGo indicates that this acquisition includes approximately 30 NYDIG employees, as well as the existing institutional client relationships of that business. The acquired business mainly serves asset management companies, hedge funds, enterprises, and family offices, providing derivatives, structured products, financing, and capital market solutions.
For BitGo, the focus of this acquisition is not only to expand the scale of the trading platform but also to bring several types of services commonly used by institutional clients under the same system. The company hopes to integrate custody, trading, financing, and settlement into a unified service in order to meet the needs of more professional clients.
NYDIG Turning to Mining and Data Centers
NYDIG stated that after selling this business, the company will further focus on power development, Bitcoin mining, and high-performance computing data center operations. The company mentioned that it has reserves for related developments exceeding 3 gigawatts.
This also means that NYDIG is scaling back on some of its trading business lines and redirecting resources towards areas that are more related to infrastructure and computing power. The company's management believes that high-performance computing is where greater growth potential lies in the future.
BitGo Continues to Expand Its Business Territory
This acquisition took place during the business expansion period of BitGo. The company had previously completed its initial public offering on the New York Stock Exchange, with a valuation of about $2 billion at the time of listing. Subsequently, BitGo also carried out a layoff of approximately 15%.
In addition to its hosting services, BitGo has also been making progress in the field of stablecoins in recent years, launching USDS in an attempt to enter the market dominated by Circle and Tether. This acquisition further demonstrates that the company is focusing on building a complete product line for institutional-level digital asset services.
