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BitGo Enters Non-Binding Agreement to Acquire Crypto Custodian Prime Trust
The crypto security and trust company announced it is planning to acquire Prime Core Technologies without disclosing the details of the deal.
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This Thursday, BitGo announced it had entered into a non-binding agreement to acquire Prime Core Technologies, Inc.—the parent company of Prime Trust. Prior to the announcement, rumors have been circulating that a cryptocurrency custodian is close to filing for bankruptcy with many speculating that the company in question was Prime Trust.
BitGo Enters Into an Agreement to Buy Prime Core Technologies
On June 8th, the digital assets security and trust firm BitGo published a press release revealing it had entered into a non-binding agreement to acquire Prime Core Technologies, Inc. According to Prime Trust’s interim CEO, Jor Law, the deal is significant as it will give the acquiring company an unprecedented “breadth of product and services.”
The combination of Prime Trust and BitGo would be a significant enhancement for the industry.No other company will have the breath of product and services nor depth of experience that this combined company would have. We are excited to offer our world-class infrastructure within a broader ecosystem and revolutionize the future of crypto.
BitGo’s CEO, Mike Belshe, was similarly positive toward the deal calling it a “landmark transaction.” He also added that after the acquisition, his company will be able to further improve its solutions and fully cater to the customers of both firms.
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Why is BitGo Buying Prime Trust?
In its press release, BitGo highlighted three key expected benefits of its likely acquisition of Prime Core Technologies. First, it is simply viewing the addition as the next expansion of its already-significant network of regulated trust companies.
Second, it is hoping that Prime Trust’s API infrastructure will strengthen BitGo’s wallet services as well as its “Go Network”. Lastly, it is hoping that it can leverage what it calls “Prime Trust’s world-class network of banking partners and payment rails, crypto IRA, and additional wealth management offerings.”
Despite its reputation, Prime Trust suffered a series of setbacks in recent months. One of its major clients, FTX, collapsed dramatically in November 2022. More recently, it has been named in SEC’s lawsuit against Binance for the services it provided for the exchange’s US affiliate.
Will BitGo go through with its acquisition of Prime Trust? Tell us what you think in the comments below.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
