Just-In: Novogratz’s Galaxy Digital To Buy Assets From Bankrupt Celsius

Galaxy Digital (GLXY), owned by Mike Novogratz, has won the auction to acquire the self-custody platform GK8 from the defunct cryptocurrency lender Celsius Network, the company announced on Friday. However, the agreement's terms weren't made public.

Mike's Strategic Purchase

As per reports, Galaxy co-President Chris Ferraro said that the company paid for the assets for a significant amount less than the $115 million Celsius paid for them last year.

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Mike Novogratz, Founder and CEO of Galaxy, states that,

"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"

The transaction, which is contingent on court clearances and other closing requirements, will be a result of the sale procedure conducted in accordance with Celsius Network LLC's Chapter 11 bankruptcy.

Galaxy Digital Expands

The acquisition would help Galaxy increase the scope of its prime brokerage services.

"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.", Mike said.

The transaction will also broaden Galaxy's presence around the globe by resulting in the opening of an office in Tel Aviv. A team of about 40 professionals, including cryptographers and blockchain technologists, would be joining Galaxy.

GK8 founders CEO Lior Lamesh and CTO Shahar Shamai will stay on to lead Galaxy's new custodial technologies business. Talking about the deal, Lamesh noted that,

"We are excited by the prospect of joining one of the leading providers of financial and digital asset services to institutions who truly understand the impact of GK8's custody technology on the future of blockchain."

He further went on to state that, "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."

Galaxy Digital's Price Reaction

The price of Galaxy Digital's share "GLXY" responded positively to the news of the acquisition deal. It's already up by 1.5% and currently trades at $4.22 at the time of writing.