BitGo to buy NYDIG trading arm for $42.5M in cash and stock plus $15M earnout
BitGo has announced the acquisition of NYDIG's institutional trading arm for $42.5 million in cash and stock, plus a $15 million earnout. The deal aims to bolster BitGo's service offerings in derivatives, structured products, and financing as the crypto market shifts toward institutional adoption.
Why it matters
This acquisition signals a broader trend of consolidation and institutionalization within the cryptocurrency sector, moving away from retail-focused models.
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.
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