Galaxy Digital Acquires Self-Custody Crypto Firm GK8 in Deal Worth Less Than Previous Acquisition

1: mike novogratz’s galaxy digital has won the bid to acquire gk8, a self-custody crypto firm. gk8 had previously been acquired by celsius in november 2021 for $115 million. bitgo then filed a lawsuit against galaxy for its “improper repudiation and intentional breach of its merger agreement with bitgo.”
paragraph 2: today’s acquisition cost was not disclosed, but a representative of galaxy digital told decrypt that “the purchase price we agreed on was materially less than what gk8 was previously purchased for.” the deal is still subject to the bankruptcy court’s approval. cold storage involves storing crypto on wallets that are isolated from the internet, while custodial wallets involve storing funds on an exchange or with a lender.
paragraph 3: galaxy digital’s acquisition of gk8 will reportedly play a key role in galaxyone, offering clients secure crypto storage without the need for an internet connection. mike novogratz added that his terra tattoo would serve as “a constant reminder that venture investing requires humility.” in a prepared statement, novogratz said that “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.”

By Evey Lovelace

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