It has been announced that Mike Novogratz, a Bitcoin billionaire and owner of the popular cryptocurrency platform Galaxy Digital, has invested in a project. The cryptocurrency platform Novogratz invested in became GK8, which is linked to Celsius Network. Here are the details…
Mike Novogratz buys cryptocurrency project at auction
Galaxy Digital released a press release on Friday. In the statement, Mike Novogratz said that cryptocurrency-focused financial services firm Galaxy Digital has won an auction to buy self-custody platform GK8 from crypto lender Celsius Network. cryptocoin.comAs we reported, Celsius put a few of its assets up for sale after filing for bankruptcy in July following the downturn in the crypto market.
The terms of the deal were not disclosed. But Galaxy spokesman Michael Wursthorn said the price is significantly lower than what Celsius paid a year ago. Celsius, as it is known, bought GK8 in November 2021 for $115 million. GK8 was founded by Lior Lamesh and Shahar Shamai, who worked as cybersecurity experts in the Israeli Prime Minister’s office.
Celsius and GK8 were intended to provide an enterprise-grade custody platform for banks and financial institutions that offers crypto-asset services protection against cyber-attacks. Meanwhile, GK8 serves banks, financial institutions, crypto exchanges, central bank digital currency (CBDC) projects, family offices and hedge funds. Galaxy’s goal with the acquisition appears to be to expand its primary brokerage offering. It is known that around 40 people will join Galaxy’s team, including blockchain engineers and crypto experts.
BitGo sued Galaxy for damages
Expanding Galaxy’s global footprint with a new office in Tel Aviv, Israel appears to be an important result of the deal, which is subject to regulatory approval. Novogratz, founder and CEO of Galaxy, used the following statements in the press release:
Adding the GK8 to our primary offering at this crucial moment for our industry also highlights our willingness to capitalize on strategic opportunities to grow Galaxy sustainably.
Earlier, in August, Galaxy abandoned its plan to acquire crypto custody specialist BitGo for $1.2 billion. At the time, Galaxy said that BitGo was unable to provide its financial statements until July 31. The cancellation of the deal resulted in BitGo suing Galaxy for damages in September. The acquisition was announced in May 2021 for approximately $1.2 billion in stock and cash at the time. It was expected to happen by the end of that year.
