Galaxy Digital, the crypto bank owned by Michael Novogratz, has just announced it plans to acquire cryptocurrency custody platform BitGo for $1.2 billion.
According to the announcement shared today by Galaxy Digital, the deal includes both shares and cash: $265 million in cash and the rest in 33.8 million newly issued shares of Novogratz's bank.
The deal, which will result in BitGo shareholders owning about 10% of Galaxy Digital, could close during the fourth quarter of 2021.
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As a result, Mike Belshe, co-founder and CEO of the custody service, will become deputy CEO of Galaxy Digital and join the company's board of directors.
BitGo, which was founded back in 2013, had been looking for a buyer for months. In December it was reported PayPal might be interested, however, the negotiations were broken off.