Bitcoin-focused firm Galaxy Digital Holdings Ltd. has agreed to buy BitGo Inc. for $1.2 billion in cash and stock, the first $1 billion deal in the cryptocurrency industry.
The deal coincides with a surge in interest and a nearly yearlong rally in the crypto sector whose market value has surged to $2 trillion.
The acquisition will make Galaxy Digital a crypto-focused financial-services firm with more than $40 billion in assets under custody.
The combined company will offer an array of products and services, including trading, custody and asset management, investment banking, prime lending, tax services and even a mining operation, aimed mainly at institutional investors.
“In order for crypto to become this revolutionary transformation, you’re going to need bigger companies that are going to knock heads against the bigger businesses” of traditional finance, Galaxy founder and Chief Executive Michael Novogratz said in an interview.