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Crypto Custodian BitGo Raises $100 Million at $1.75 Billion Valuation

BitGo, a company that provides regulated custody and financial services for digital assets, has revealed that it recently raised $100 million at a valuation of $1.75 billion. The funding round follows BitGo’s decision over two months ago to abandon its intention to acquire troubled competitor Prime Trust. The company intends to use the funds for global expansion and strategic acquisitions.

BitGo’s journey of fortune, fate and dodged bullets

BitGo provides safeguards for storing crypto assets by protecting private keys. In addition, the company is acting as a trustee for the creditors of the defunct FTX digital asset exchange while its bankruptcy procedures are ongoing. The company last successfully raised capital in 2017, when it closed a $42.5 million Series B transaction sponsored by Valour Equity Partners.

In June, BitGo announced that it intended to buy Prime Core Technologies’ shares, which would have enabled it to acquire Prime Trust. Both companies offer a range of financial services, including custody for enterprises dealing with digital assets. However, the deal fell apart and Prime Trust has since signed for bankruptcy.

BitGo dodged another bullet, when Galaxy Digital walked out on a proposed deal to acquire the company for $1.2 billion over alleged failure by the former to provide records of audited financial accounts. In response to Galaxy Digital’s “improper repudiation” and “intentional breach” of the merger deal, BitGo filed a $100 million lawsuit against the company. However, the court ruled in favour of Galaxy Digital.

In a twist of fate, Galaxy Digital fell into a financial crisis, ending in bankruptcy. Meanwhile, BitGo’s success curve has been on the rise since then. The company has seen a significant rise in staked assets, as well as a surge of 60% in new customers and a 20% rise in total assets under custody.