BitGo has acquired NYDIG's institutional trading business in a two-step merger valued at approximately $42.5 million, the NYSE-listed company announced Wednesday. The deal includes $7 million in cash and roughly $35.5 million in BitGo stock, with additional earnout provisions tied to revenue milestones and retention awards.
The transaction brings roughly 30 NYDIG employees and their institutional client relationships into BitGo. The acquired business provides derivatives, structured products, financing and capital-markets solutions serving asset managers, hedge funds, corporates and family offices.
BitGo CEO and co-founder Mike Belshe said the acquisition strengthens the company's trading platform while complementing its regulated custody, settlement and wallet infrastructure. "Institutions increasingly want to work with a trusted partner that can support the full lifecycle of digital assets—from custody and trading to financing and settlement," Belshe stated.
For NYDIG, the sale allows the company to concentrate on its power-generation, Bitcoin mining and high-performance computing data-center operations. NYDIG CEO Tejas Shah identified the HPC opportunity as the company's primary focus, noting the development pipeline exceeds 3 gigawatts.
The purchase marks a significant expansion for BitGo, which completed its initial public offering on the NYSE earlier this year. The company has also expanded beyond custody services into stablecoins, launching its USDS token.
