Today, BitGo announced that it has closed the sale of the NYDIG institutional trading business and related assets, a transaction that has validated its acquisition of bitcoin mining firm NYDIG. The investment further empowers the crypto custodian and establishes it as a complete digital asset platform. As a result, BTGO stock price jumped more than 2%.

Bitgo wraps up acquisition of NYDIG institutional trading business.

According to the official announcement, Crypto custodial BitGo made a definitive agreement to buy the NYDIG institutional trading business. This enhanced the regulated crypto custodian's derivatives, structured products and financing capabilities.

In particular, NYDIG's institutional trading arm caters to asset managers, hedge funds, corporates, family offices, and other high-end institutional investors. This enhances BitGo's status as a fully fledged digital asset infrastructure provider.

It provides institutions access to a wider array of trading and capital markets services under one, integrated and regulated system.

With the transaction, around 30 NYDIG employees have joined BitGo, along with their institutional trading relationships. NYDIG Institutional Trading offers derivatives, structured products, financing and capital markets solutions.

Mike Belshe, BitGo's CEO and co-founder, noted that as digital assets become more important, institutions are increasingly looking for a trusted partner who can support the entire digital asset life cycle from being held in custody to trading to financing and settlement. The buy is expected to help him to “serve a wider range of sophisticated clients”, he added.

In the meantime, NYDIG plans to concentrate its efforts on its vertically integrated power generation, bitcoin mining, and high-performance computing data center development business.

BTGO Stock Extends Gain

Btgo stock has risen 1.99% to $7.16 Thursday trading on the NYSE. The stock has risen 24 hours by more than 2.50% after the opening, moving further up 0.56% after hours. Trading volume has also increased to the average of 2 million in volume which parallels the overall recovery of the crypto market.

Recently, Canaccord reiterated a ‘Buy’ rating on BTGO stock, with a $15 price target. Remarkably, BTGO stock has jumped over 44% in just a month. Key among these is that BitGo recently got its VASP license from South Korea's VASP licensing body, the Financial Intelligence Unit (FIU), which is the first foreign company to receive a direct license in the country.

Meanwhile, Bitcoin is trading more than 1% higher in the past 24 hours, with the price currently trading at $79,919. The 24-hour low and high are $78,597 and $81,281, respectively. Furthermore, trading volume increased by almost 30% in the last 24 hours despite crypto options expiry.

The purchase marks a trend in the industry towards centralized platforms that provide secure, compliant, and comprehensive institutional crypto custody solutions for digital asset portfolios.

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