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.)

More recently, BitGo agreed to acquire the assets of Prime Trust in June but backed away from that deal just a few weeks later.

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.