BitGo to buy NYDIG trading arm for $42.5 million plus earnout

BitGo buys NYDIG trading unit in $57.5 million deal

Cryptocurrency custody company BitGo is buying the institutional trading business of NYDIG. The transaction is valued at $42.5 million, which includes $7 million in cash and about $35.5 million in BitGo stock. Additionally, NYDIG can earn up to another $15 million in cash if the business meets certain revenue targets.

The acquisition gives BitGo access to NYDIG's trading operations, which include derivatives, structured products, and financing services. This expansion allows BitGo to offer more capital markets services alongside its existing custody and wallet solutions for digital assets.

Key details of the acquisition

• The deal structure includes $7 million in cash and approximately $35.5 million in BitGo stock.
• An additional $15 million earnout is tied to revenue milestones, with potential extra stock awards.
• BitGo has granted NYDIG registration rights for the shares issued in the deal.
• Transferred employees may receive restricted stock units and cash retention awards if revenue goals are met.
• NYDIG's broader business includes bitcoin custody, trading, financing, corporate treasury, and high-density power facilities for mining and AI.

What NYDIG and BitGo said

Tejas Shah, CEO of NYDIG, stated that his team built NYDIG's institutional trading business into a strong operation with proven expertise in derivatives and financing. He described the trading franchise as complementary to BitGo's digital asset infrastructure and expressed confidence in a smooth transition for clients and staff.

Shah also highlighted NYDIG's work in high-performance computing data centers, noting it as a significant opportunity for the company's future focus after the sale.

Market context

BitGo went public in 2026 as the first crypto firm to IPO that year, raising about $212.8 million with an initial share price of $18 and a valuation just over $2 billion. As of the filing, BitGo shares were trading around $7, reflecting a depressed market for crypto stocks.

Andrew Melville, head of research at Block Scholes, commented that the acquisition highlights a broader shift toward institutional investment in crypto. He noted that this cycle is driven by institutional capital rather than retail demand, forcing established crypto companies to adapt by serving institutional clients, tokenizing traditional assets, or expanding on-chain trading.

Why this matters

The purchase expands BitGo's service offerings from custody and wallets into trading and financial products, positioning it to serve institutional clients with more comprehensive tools. It also signals how publicly traded crypto firms are consolidating capabilities to compete in a market increasingly dominated by large investors.

Sources

• CoinDesk