Capital markets News

Galaxy Digital to buy crypto custody tech firm GK8 from bankrupt Celsius

digital asset custody

Galaxy Digital has agreed to buy GK8, the digital asset self-custody technology firm owned by bankrupt crypto lender Celsius. Israel’s GK8 was acquired by Celsius for $115 million in November last year, with Celsius entering Chapter 11 bankruptcy in July. In August, Galaxy terminated a $1.2 billion agreement to buy custodian BitGo, a deal originally announced in May 2021.

“The acquisition of GK8 is a crucial cornerstone in our effort to create a truly full-service financial platform for digital assets, ensuring our clients will have the option to store their digital assets at or separate from Galaxy without compromising versatility and functionality,” said Mike Novogratz, Founder and CEO of Galaxy. 

“Adding GK8 to our prime offering at this pivotal moment for our industry also highlights our continued willingness to take advantage of strategic opportunities to grow Galaxy in a sustainable manner.”

GK8 provides secure digital asset custody solutions to financial institutions, including banks, trust companies, broker-dealers and retail platforms. It will be one of the custody options provided by the GalaxyOne offering.

“With the backing of Galaxy, we aim to introduce new and exciting offerings to the industry that showcase a combination of Galaxy’s best-in-class services and GK8’s cryptography, security, and unparalleled R&D skills,” said GK8 CEO Lior Lamesh. 

The acquisition will add 40 new staff. At the start of November, Bloomberg reported that Galaxy was considering axing as much as 20% of its 375 staff. A related NFT company, Candy Digital, also announced staff cuts this week.

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