BitGo raises $100M at a $1.75B valuation
Crypto custody startup BitGo has raised $100 million in Series C funding at a $1.75 billion valuation.
Why it matters: The deal bucks crypto industry trends and provides BitGo a war chest to pursue acquisitions at a time when valuations are low and competitors are struggling.
State of play: BitGo's clients include the creditors of bankrupt digital asset exchange FTX, as well as going concerns like Swan Bitcoin, Mysten Labs and Nike.
- The startup says it has more than 1,500 customers in over 50 countries and processes 20% of all bitcoin transactions by value.
- Since the beginning of the year, BitGo says it has seen a 60% increase in new clients, 20% growth in assets under custody, and 40x growth in assets staked.
What's next: BitGo says it will use the funding to pursue strategic acquisitions and expand its custody and Wallet as a Service offerings globally.
Yes, but: It wasn't that long ago that BitGo itself was set to be acquired. In May 2021, the company agreed to be bought by Galaxy Digital Holdings for $1.2 billion.
- That deal was scrapped a year later, and BitGo sued Galaxy Digital for calling off the deal. (That suit was ultimately dismissed in June.)
Of note: BitGo did not disclose investors who participated in this round, but previous backers include Goldman Sachs, Craft Ventures, DRW, Galaxy Digital Ventures, Redpoint Ventures and Valor Equity Partners.