Crypto investment bank Galaxy Digital announced in a press release on Friday about its intention to acquire GK8, an institutional self-custody platform tied to the bankrupt Celsius Network lending giant.
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The company said that the deal will be the result of a sale process executed in connection with Celsius' Chapter 11 bankruptcy. Galaxy Digital Founder and CEO, Mike Novogratz, said that with the custodian, the firm's clients will have the option to store their crypto at a new platform "without compromising versatility and functionality." He added:
"Adding GK8 to our prime offering at this pivotal moment for our industry also highlights our continued willingness to take advantage of strategic opportunities to grow Galaxy in a sustainable manner."
With the acquisition, Galaxy expects to expand its team with 40 new people. GK8 founders CEO Lior Lamesh and CTO Shahar Shamai will remain in their roles. Celsius Network acquired GK8 for a total of $115 million in November last year.
This is Galaxy's third attempt to acquire a crypto custodian as the company is trying to become public in the United States. Earlier, Galaxy Digital declined to acquire BitGo for $1.2 billion and PayPal for an undisclosed price.
In early November, reports said that Galaxy Digital was considering laying off as much as 20% to weather the market's downturn. A spokesperson for Galaxy, Michael Wursthorn, said that the firm is "always considering optimal team structure and strategy and will share future plans when finalized."
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