BitGo has completed the acquisition of NYDIG’s institutional trading business through a two-stage merger valued at approximately $42.5 million.
The transaction brings together derivatives, structured products, financing solutions and capital markets services designed for asset managers, hedge funds and family offices, enhancing BitGo’s existing custody, settlement and wallet infrastructure.
The sale enables NYDIG to concentrate its efforts on power generation, Bitcoin mining operations and high-performance computing data center initiatives.
BitGo has completed the acquisition of NYDIG’s institutional trading operations, significantly expanding its derivatives, financing and capital markets capabilities as the digital asset infrastructure provider continues to broaden its services for professional clients.
The NYSE-listed company announced Wednesday that it has executed a definitive agreement and finalized the transaction, absorbing approximately 30 NYDIG employees along with the unit’s institutional client relationships.
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According to regulatory filings, the transaction is structured as a two-stage merger with total consideration of approximately $42.5 million: $7 million in cash and roughly $35.5 million in BitGo stock. The agreement also includes earnout provisions, featuring a $10 million cash payment contingent upon achieving a specific revenue milestone and up to an additional $5 million in cash along with extra shares tied to a second milestone. Retention awards will be provided to transferred employees.
The acquired business delivers derivatives, structured products, financing solutions and capital markets services to asset managers, hedge funds, corporations and family offices.
BitGo stated that the acquisition strengthens its trading platform while complementing its regulated custody, settlement and wallet infrastructure, reflecting a strategic bet that institutions increasingly prefer consolidated digital asset service providers.
“Institutions increasingly want to work with a trusted partner that can support the full lifecycle of digital assets—from custody and trading to financing and settlement,” said Mike Belshe, CEO and co-founder, in a statement. He added that the deal significantly scales BitGo’s trading capabilities while bringing aboard an experienced team.
For NYDIG, the transaction allows the company to focus on its power generation, Bitcoin mining and high-performance computing data center business, which reportedly has a development pipeline exceeding 3 gigawatts. NYDIG CEO Tejas Shah described the trading unit as complementary to BitGo’s infrastructure and emphasized the HPC opportunity as the area with the greatest potential for growth.
The acquisition concludes a notable year for BitGo. The company completed its NYSE listing through an initial public offering that valued the firm at approximately $2 billion, though it subsequently joined the broader industry trend of reducing its workforce, implementing approximately 15% staff reductions.
BitGo has also expanded beyond its core custody services into the stablecoin market, introducing its USDS token in a move that positions the company as a competitor to established players such as Circle and Tether.
