BitGo’s deal team paid $425 million in cash plus stock to acquire NYDIG, with an earnout included.
Who is NYDIG? Back then, it was one of the best-capitalized among the licensed custodians in New York. After the assets were sold, the team scattered, and now BitGo has picked up NYDIG’s deal desk.
The crypto custody business hasn’t had it easy since 2022. Under regulatory pressure, in a higher-rate environment, and through multiple rounds of blowups, the players that survived have begun to eat up those that went under. BitGo’s move suggests it believes the industry consolidation isn’t over yet—and that companies with ammunition will keep acquiring.
Is this a bottoming-out signal for the industry, or a new phase where big fish eat small fish? Either way, it can’t be a bad thing.
Who is NYDIG? Back then, it was one of the best-capitalized among the licensed custodians in New York. After the assets were sold, the team scattered, and now BitGo has picked up NYDIG’s deal desk.
The crypto custody business hasn’t had it easy since 2022. Under regulatory pressure, in a higher-rate environment, and through multiple rounds of blowups, the players that survived have begun to eat up those that went under. BitGo’s move suggests it believes the industry consolidation isn’t over yet—and that companies with ammunition will keep acquiring.
Is this a bottoming-out signal for the industry, or a new phase where big fish eat small fish? Either way, it can’t be a bad thing.