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BitGo to buy NYDIG trading arm for $42.5M cash and stock plus earnout
The acquisition would add NYDIG’s institutional trading capabilities, expanding BitGo’s custody, settlement, wallet, and capital markets services including derivatives and financing.
Cryptocurrency custody specialist BitGo agreed to buy NYDIG’s institutional bitcoin trading business in a deal valued at $42.5 million, according to a filing cited by CoinDesk. The purchase includes $7 million in cash and about $35.5 million in BitGo stock.
The transaction also includes a $15 million earnout tied to revenue milestones, with the filing noting the potential for additional stock tied to those targets. BitGo also granted NYDIG registration rights for the BitGo shares it issued as part of the agreement.
CoinDesk reports the deal is designed to expand BitGo’s platform beyond custody, settlement, and wallets to include derivatives, structured products, financing, and other capital markets services. BitGo further agreed to issue restricted stock units and cash retention awards to transferred employees upon meeting a revenue milestone.
The report frames the move as part of broader institutionalization in crypto markets, citing Andrew Melville of Block Scholes research. He said the current cycle is driven more by institutional capital than purely retail demand, requiring established crypto players to adapt to institutional investor needs.
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