BitGo Bolsters Institutional Reach with $42.5M Acquisition

BitGo has made significant strides in its bid to become a full-stack institutional platform for digital assets, announcing that it has acquired NYDIG's institutional trading business in a deal worth $42.5 million. The acquisition brings with it approximately 30 employees and established relationships with over 100 clients across asset managers, hedge funds, corporates, and family offices.

The deal is structured as a two-step merger, with BitGo paying $7 million in cash and roughly $35.5 million in its own stock. The transaction also includes earnout provisions that could add up to $15 million more in cash and shares if certain revenue milestones are met.

NYDIG's decision to exit institutional trading was driven by its focus on power generation, Bitcoin mining, and high-performance computing data centers, which it believes hold greater long-term potential. The company has a development pipeline exceeding 3 gigawatts for these initiatives.