BitGo Secures $100M Funding Round, Valuation Hits $1.75B

BitGo Inc. announced a successful fundraising round, securing $100 million and elevating its valuation to $1.75 billion.

BitGo specializes in safeguarding crypto assets, often using physical vaults to protect private keys, Bloomberg reported.

The U.S.-based cryptocurrency custody firm currently oversees assets for the creditors of the beleaguered digital asset exchange FTX (CRYPTO: FTT) during its ongoing legal battles.

Its clientele also comprises financial services entity Swan Bitcoin, blockchain creators Mysten Labs Inc. and global apparel brand Nike Inc (NYSE: NKE).

BitGo CEO Mike Belshe commented on the challenging market conditions, emphasizing the company's commitment to regulatory compliance as a distinguishing factor in the tumultuous digital asset environment.

“Regulatory safety is just on everybody’s minds right now,” he said.

The recent funds were sourced exclusively from new investors, Belshe revealed, without naming the participants.

He did mention that these investors hail from both the U.S. and Asia, with some not being directly affiliated with the crypto sector.

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Among BitGo's past investors are notable names like Goldman Sachs Group Inc. (NYSE: GS), DRW Holdings and Galaxy Digital Ventures.

This valuation marks a significant increase from 2021 when Galaxy Digital Holdings had intended to purchase BitGo in a deal valued at $1.2 billion, which was later abandoned.

Belshe indicated that the fresh capital would be channeled toward strategic acquisitions.

He hinted at a couple of potential deals already under consideration.

Notably, earlier in June, BitGo had retracted its intention to buy the parent firm of the embattled crypto custodian Prime Trust, amidst claims of a deficit in customer funds.

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