BitGo Buys NYDIG's Institutional Trading Business in $42.5M Deal
BitGo paid $7M cash and $35.5M in stock for NYDIG's institutional trading arm. The deal brings 30 employees, 250 client relationships, and derivatives and financing operations under BitGo's custody platform.
Crypto custody firm BitGo has acquired NYDIG's Bitcoin-focused institutional trading business in a deal worth about $42.5 million at closing. The transaction, signed and completed Thursday and disclosed Friday, paid $7 million in cash and roughly $35.5 million in BitGo stock, with up to $15 million more in cash tied to two revenue milestones.
NYDIG's derivatives, structured products, financing and capital markets operations move to BitGo under the purchase, along with roughly 30 employees, according to the 8-K filed Friday. Around 250 institutional client relationships were transferred. The filing also sets aside staff retention awards targeting $5 million each in stock and cash.
NYDIG focuses on power
NYDIG, an affiliate of Stone Ridge Holdings Group, said the sale lets it focus on power generation, Bitcoin mining and high-performance computing data centers. Its development pipeline exceeds 3 gigawatts, with more than 1 gigawatt deliverable in 2027 and 2028.
"Institutions increasingly want to work with a trusted partner that can support the full lifecycle of digital assets," said Mike Belshe, CEO and co-founder of BitGo. The firm went public on the New York Stock Exchange at the start of the year and had a market value below $1 billion as of Thursday, per CNBC.
"Our team built NYDIG's institutional trading business into something exceptional: proven execution expertise with derivatives and financing capabilities," said CEO Tejas Shah, adding that the data center business is "where we see one of the most significant opportunities ahead."
Belshe on the market structure bill
Belshe went on CNBC's Squawk Box on Friday, days after Bitcoin briefly topped $80,000. Asked about a potential crypto winter, he said markets "have had high highs and low lows" while "the thesis behind Bitcoin continues to grow," pointing to tokenized equity plans from Morgan Stanley, Charles Schwab and DTCC.
On the CLARITY Act, which faces a Senate cloture vote on September 15, Belshe said everyone should want the market structure bill to pass. "This is what gives a legislative path forward to help rein that in, prevent any FTX from ever happening again," he said, estimating 12 to 18 months of rulemaking after passage and noting he was at the White House with President Trump last week.
Belshe confirmed BitGo runs infrastructure for USD1, the stablecoin behind the Trump family's World Liberty Financial, and said BitGo just received a license in South Korea. "People don't realize this, but America actually is behind," he added.
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