Crypto Custody Startup BitGo Hits $1.75B Valuation After $100M Series C

Last August, digital asset investment firm Galaxy Digital called off its proposed $1.2 billion acquisition of crypto custody firm BitGo — severing what would have been one of the largest deals in crypto history.

A year later, Palo Alto, California-based BitGo was able to lock in an even higher valuation from investors, raising a $100 million Series C at a $1.75 billion valuation.

The company did not disclose who participated in the round, outside of saying it was “new, outside strategic investors.” Previous investors include Valor Equity Partners, GS Growth and Redpoint Ventures.

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The cash infusion will be used for strategic acquisitions and to grow BitGo’s regulated custody, wallet and infrastructure solutions.

Since the start of the year, BitGo has seen a 60% increase in newly onboarded clients. The company also currently is the custody provider for FTX creditors.

“Not only are we seeing growing demand for regulated custody solutions in the US, but we’re also seeing the demand on a global scale,” said CEO Mike Belshe in a release.

State of crypto

Even with Bitcoin prices up 75% since the start of the year, it seems like most headlines about the crypto industry center on regulations.

So it does seem logical that one of the biggest rounds of the year would go to a licensed crypto wallet startup.

The round, however, is eye-catching considering how few nine-figure raises there have been this year in crypto. BitGo’s is only the sixth such round in a down year for crypto funding.

Thus far this year, crypto startups have raised less then $2.8 billion, per Crunchbase data. That is a small pittance next to the more than $15 billion such startups raised last year.