BitGo to buy NYDIG trading arm for $42.5M in cash and stock plus $15M earnout

Cryptocurrency custody specialist BitGo is buying the institutional trading business of bitcoin-focused financial firm NYDIG, for $42.5 million comprising cash and stock, plus $15 million in cash which is contingent on meeting revenue milestones, according to a filing on Friday.

The acquisition will expand BitGo’s custody, settlement and wallet business to include derivatives, structured products, financing and other capital markets services.

The deal to buy NYDIG IF Holdings is made up of $7 million in cash and around $35.5 million, as well as the $15 earnout tied to revenue milestones and potential additional stock.

BitGo granted NYDIG registration rights for the BitGo shares issued. BitGo also agreed to issue restricted stock units and cash retention awards to transferred employees upon meeting a revenue milestone.

The acquisition is indicative of the wider theme of institutionalisation in crypto markets, said Andrew Melville, Head of Research at institutional crypto derivatives data and analytics firm Block Scholes.

“This cycle is driven by institutional capital rather than purely retail demand, as was the case in previous crypto cycles,” Melville said. “As a result, incumbent crypto players must adapt to the demands of the new investor type, whether by servicing institutional clientele, tokenizing TradFi assets, encouraging the adoption of stablecoins for payment rails, or real-world asset derivatives trading onchain.”

BItGo BTGO$7.1100 was the first crypto firm to IPO in 2026, at a share price of $18, raising about $212.8 million and valuing the firm at just over $2 billion. In the current depressed crypto market, BitGo shares are trading at around $7.

NYDIG (New York Digital Investment Group) spans custody, trading, financing and corporate treasury plays based around bitcoin, as well as running high-density power facilities for Bitcoin mining and AI.

“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. “That business is complementary to BitGo’s digital asset infrastructure, and we look forward to a seamless transition for our clients and our colleagues, some of the most talented people in this market. The discipline and intensity that built our trading franchise also drives our HPC data center development business, where we see one of the most significant opportunities ahead.”

Source: cryptonews.net