Prominent crypto custodian BitGo on Wednesday announced the completion of a $100 million series C funding round at a valuation of $1.75 billion. BitGo did not disclose the participants in the round but said they were new and outside investors.
Strategic Acquisitions
The Palo Alto, California-based company stated that the fresh capital will be used to finance “strategic acquisitions and expand its secure and regulated custody, wallet, and infrastructure solutions globally.” At least two acquisitions are already in the works, as per Bloomberg.
BitGo is a leader in digital asset financial services that provides institutional clients with security, custody, and liquidity solutions. The company is currently the custodian for creditors of the bankrupt crypto exchange FTX. The custodian was also previously chosen as the distributor for creditors of bankrupt Mt. Gox.
BitGo Records 40x Growth in Staked Assets
In a press release, BitGo said since the beginning of the year, it saw a 60% surge in newly onboarded clients, a 20% rise in assets under custody (AUC), a 200% spike in fiat custody, and a 40x growth in staked assets.
Commenting on the development, BitGo’s CEO Mike Belshe said:
“Not only are we seeing growing demand for regulated custody solutions in the US, but we’re also seeing the demand on a global scale. We are very pleased to announce our $100M Series C for the purpose of meeting this growing need …”
The latest round comes as the crypto industry sees reduced valuation, leading to a decline in venture capital (VC) funding. As reported by Coinfomania last month, crypto startups collectively received $2.3 billion from VCs during Q2 2023, marking a significant drop from the $12.14 billion raised in Q1 2022. With the reduced investment in Q2, 2023, funding for the sector recorded a decline for the fifth consecutive quarter.
Meanwhile, BitGo’s $100 million series C raise indicates that some investors remain bullish on crypto despite the market conditions.
