Galaxy Digital to Embrace Celsius Network’s Assets
On Friday, it was said that Mike Novogratz’s company, Galaxy Digital (GLXY), won an auction to buy the self-custody platform GK8 from the now-defunct cryptocurrency lender Celsius Network. GK8 was being sold by the insolvent cryptocurrency lender Celsius Network. Celsius Network once owned GK8. The general public was not informed of the particulars of the deal that took place.
Trending: Why Celsius Went Bankrupt?
Galaxy’s Co-President Claimed the Company Buy Assets of Less Than $115M
Bloomberg, which had already reported on the deal, said that Galaxy’s co-president, Chris Ferraro, said that the company bought the assets for a significant amount that was less than the $115 million that Celsius had paid them the year before. The self-custody platform Celsius, acquired over a year ago, was placed up for sale after the lender filed for bankruptcy in July.
Bloomberg had previously reported on the transaction. Galaxy did the deal because it wanted to add more products to its prime brokerage line. With this purchase, Galaxy wants to add to what it has to offer in terms of prime brokerage. About 40 people, such as blockchain professionals and cryptographers, would join Galaxy’s team.
The company says that the purchase, which is now waiting for approval from the right people, will strengthen Galaxy’s international presence by opening a new office in Tel Aviv. The approval process is currently underway. At this very moment, he finds himself seriously considering the idea of self-custody as a workable alternative. Ferraro also said they have been planning to improve Galaxy’s technology for a long time.
Galaxy Digital Dropped its Plan to Buy BitGo for $1.2 billion in August
Novogratz, the founder, and CEO of Galaxy, said in the announcement that adding GK8 to their primary offering at this critical time shows that they are always looking for ways to build Galaxy sustainably. In July, the bear market caused Celsius to file for bankruptcy and put some of its assets up for auction. On the other hand, Galaxy Digital has decided to give up on its plan to pay $1.2B to buy BitGo.
Galaxy said at the time, in August, that BitGo had yet to file financial statements by the July 31 deadline. This information came from Galaxy. In September, BitGo sued Galaxy, saying it had to pay BitGo money even though the agreement was over.
