BitGo has acquired NYDIG’s Bitcoin-focused institutional trading business for approximately $40.5 million in a deal that closed Thursday, paying $7 million in cash and $35.5 million in stock. The purchase adds NYDIG’s derivatives, structured products, financing, and capital markets operations to BitGo, along with roughly 30 employees and about 250 institutional client relationships. NYDIG will now focus on power generation, Bitcoin mining, and high-performance computing data centers.
Crypto company BitGo has officially acquired NYDIG’s Bitcoin-focused institutional trading business. The deal was signed and completed on Thursday and reported on Friday, paying $7 million in cash and about $35.5 million in stock at closing, with up to $15 million more in cash tied to two revenue milestones.
The purchase brings NYDIG’s derivatives, structured products, financing, and capital markets operations to the custody company, along with roughly 30 employees. Around 250 institutional client relationships were moved across, as stated in the SEC filing from the same day.
“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 NYSE at the start of the year and had a market value below $1 billion as of Thursday.
NYDIG, an affiliate of Stone Ridge Holdings Group, said the sale lets it concentrate on power generation, Bitcoin mining and high-performance computing data centers. It described a development pipeline above 3 gigawatts, with more than 1 gigawatt deliverable in 2027 and 2028.
“Our team built NYDIG’s institutional trading business into something exceptional: proven execution expertise with derivatives and financing capabilities,” said Tejas Shah, CEO of NYDIG, adding that the data center business is “where we see one of the most significant opportunities ahead.”
Belshe went on CNBC’s Squawk Box on Friday, days after Bitcoin briefly topped $80,000. Asked about a crypto winter, he said the 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.
