Quick take:
- BitGo has secured $100 million in a Series A round.
- The crypto custody solutions provider is now valued at $1.75 billion.
- The fresh funding reportedly came from an entirely new cluster of investors from the US and Asia.
BitGo has announced a $100 million Series C round at a valuation of $1.75 billion. This announcement comes after losing a lawsuit from leading crypto hedge fund Galaxy Digital.
The company’s latest fundraising came from a cluster of entirely new investors according to a report by Bloomberg. The Goldman Sachs-backed crypto company plans to use the new funds to expand its crypto custody services covering wallet and infrastructure solutions organically and through strategic acquisitions.
BitGo’s custody services are primarily developed for institutional investors looking to capitalise on opportunities in the crypto market. The company CEO CEO Mike Belshe said the fundraisings will help in scaling the product offering with tools to help meet the growing demand.
BitGo said it has already seen a 60% increase in the number of new clients this year so far, while stakes assets are up 40x. “Not only are we seeing growing demand for regulated custody solutions in the United States, but we’re also seeing the demand on a global scale,” added Belshe.
BitGo’s infrastructure allows mainstream companies to capitalise on cryptocurrency opportunities including trading, staking, lending, and borrowing. Users can trade directly from their cold wallets and benefit from aggregated liquidity without raising conflicts of interest.
Some of the supported cryptocurrencies for those looking to borrow include the crypto protocol and Layer 1 blockchain tokens Aave, Avax, and Cardano as well as leading cryptocurrencies and web3 developer networks Bitcoin and Ethereum. Dogecoin, which became popular after receiving social media cheer from Elon Musk is also supported.
Besides, Goldman Sachs, BitGo’s previous cluster of investors also included DRW Holdings and Galaxy Digital Venture, which pulled the plug on an attempted $1.2 billion acquisition prompting a lawsuit that BitGo lost.
BitGo’s latest fundraising continues to signal a sudden return in web3 funding amid the current bear market. Last month, CoinFund raised $158 million, while Polychain Capital secured a $200 million first close of a $400 million fourth fund.
Metaverse startup Futureverse also wrapped up a $54 million fundraising before launching a $50 million accelerator for developers on Root Network.
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