BitGo Bolsters Institutional Crypto Services with NYDIG Trading Business Acquisition
BitGo has acquired NYDIG's institutional trading business in a deal that adds derivatives, structured products, and financing capabilities to its platform. The acquisition comes seven months after BitGo's initial public offering (IPO), during which its stock price dropped by 60%. The company is also facing a federal securities class action over bitcoin-driven losses.
The deal brings approximately 30 staff members from NYDIG's trading business, which earns fees on client trades rather than taking directional exposure to the market. This shift in revenue model could help BitGo mitigate its losses related to its own bitcoin holdings, which contributed to a $19 million net loss in the second quarter.
NYDIG is redirecting its resources towards bitcoin mining and power infrastructure after acquiring Crusoe's mining operation in March 2025. The company now focuses on a power and data center pipeline that exceeds 3 gigawatts, with over 1 gigawatt deliverable in 2027 and 2028.