BitGo completed its acquisition of NYDIG’s institutional trading business and related assets, the company announced. The deal expands its regulated trading, financing, derivatives, and structured product services for institutional clients.
About 30 NYDIG employees joined BitGo through the transaction, alongside the division’s existing institutional trading relationships.
The transferred business serves asset managers, hedge funds, corporations, family offices, and other sophisticated investors seeking access to digital asset markets.
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NYDIG Acquisition Expands BitGo Institutional Services
The newly acquired firm gives the derivatives, structured products, financing, and capital market services to institutional customers across digital asset markets.
The acquisition creates links between these services and the custodian’s services through one one integrated and regulated system for digital assets.
According to Mike Belshe, CEO and Co-founder of BitGo, the firms would like to have reliable partners that are capable of handling the full lifecycle of digital assets.
“Institutions increasingly want to work with a trusted partner that can support the full lifecycle of digital assets,” Belshe added.
The coverage will include custody, trading, financing, settlement, and capital markets support. Belshe said the acquisition should enable the company to serve a broader group of clients.
NYDIG will now focus on the vertical integration of power generation, Bitcoin mining, and high-performance computing data center development activities.
Why BitGo Stock Rose After the NYDIG Acquisition
Following the news, BitGo stock rose in both the regular and after-hours trading sessions on Thursday. Yahoo Finance data shows that NYSE-traded BTGO rose by 1.99% to close at $7.16 before further rising by 1.82% in after-hours, bringing its total increase above 3.5%.
The trading volume amounted to about 2 million shares amid a rebound in the cryptocurrency market. BTGO has risen by more than 40% over the last month.
Canaccord recently reaffirmed its Buy rating on BitGo and kept its price target at $15 for BTGO. Canaccord did not change its ratings for the custody services provider, whose stocks are listed on the New York Stock Exchange.
BitGo also received a license as a virtual asset service provider from the Financial Intelligence Unit of South Korea recently. The company became the first foreign company to get an approved VASP license in South Korea.
As of press time, Bitcoin is trading at $79,363, up by over 0.5% in the past 24 hours. The trading volume has also risen by almost 14% over the same period.
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