BitGo acquires NYDIG's institutional trading business for approximately $42.5 million

BitGo announced the completion of its acquisition of NYDIG's institutional trading business, which was completed in a two-step merger, with a total consideration of approximately $42.5 million, including $7 million in cash and about $35.5 million in BitGo stock. About 30 NYDIG employees will transition with the business, and the deal also includes Earnout terms linked to revenue milestones.

The business provides derivatives, structured products, financing, and capital market solutions for asset management firms, hedge funds, corporations, and family offices. BitGo CEO Mike Belshe stated that institutional clients are increasingly looking to partner with trusted partners that can support the entire lifecycle of digital assets, covering custody, trading, financing, and settlement.

For NYDIG, the sale allows it to focus on power generation, Bitcoin mining, and high-performance computing data center businesses, with the company stating that its development pipeline exceeds 3 gigawatts. BitGo went public on the NYSE this year, with a valuation of approximately $2 billion, and launched the USDS stablecoin.