Galaxy Digital to Buy Self-Custody Platform from Bankrupt Celsius
Galaxy Digital has won the auction to purchase Celsius Network’s self-custody platform, according to the firm’s press release. While the financial details of the deal remain undisclosed, Mike Novogratz’s financial services firm allegedly bought the platform for less than $115 million Celsius previously paid.
Galaxy Acquires Celsius’s Self-Custody Platform to Expand Brokerage Offerings
Mike Novogratz’s Galaxy Digital has secured an auction to acquire GK8, a self-custody platform belonging to the collapsed Celsius Network, according to the press release. The platform will be purchased in the bankruptcy proceedings, Galaxy added.
The financial terms of the deals were not revealed, though Galaxy bought the platform for a lower price than the $115 million Celsius paid in 2021, according to Galaxy Digital’s co-President Chris Ferraro. Through the acquisition, Galaxy aims to broaden its prime brokerage offerings, with roughly 40 new employees including blockchain developers and cryptographers set to join the crypto-focused investment firm.
“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.”– Mike Novogratz, Founder, and CEO of Galaxy.
GK8 is a technology platform providing clients with custody services for their digital assets. Thanks to its sophisticated technology, institutions, and other clients are able to safe-keep their crypto assets and carry out blockchain transactions with no need to connect to the internet.
Galaxy will also use GK8’s custody offerings to facilitate the development of GalaxyOne, the firm’s new solution that provides institutional investors with a broad range of crypto services. The acquisition, subject to regulatory approval, will expand Galaxy’s footprint with a new office in Tel Aviv, Israel.
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Galaxy Acquires GK8 a Year After Celsius Bought it For $115M
Galaxy’s buyout of GK8 comes a year after embattled crypto lender Celsius Network acquired the platform for $115 million. GK8 provides services to institutional clients, banks, crypto exchanges, hedge funds, and family offices, among others.
But Celsius’ growth was short-lived as the crypto lender announced bankruptcy in July 2022. The collapse came just a few weeks after the Terra-LUNA debacle, which sent shockwaves through the crypto world.
Earlier this year, Celsius filed a request with a bankruptcy court in a bid to help certain customers withdraw their funds, which became frozen after the lender’s collapse. The crypto firm wasn’t the only victim of the Terra implosion, with Voyager Digital and 3AC also falling into bankruptcy a few months ago.
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