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Crypto Custodian BitGo Secures $100M for Prime Trust Deal Cancellation

Crypto custodian BitGo raises $100M at around $1.75B valuation, two months after scrapping the plan to acquire competitor Prime Trust, reports Bloomberg.

ShahZaib Ahmed



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BitGo, a well-known crypto custody platform has reportedly collected up to $100M at an approximate valuation of nearly $1.75B. As per a report published by a prominent news outlet Bloomberg, The collection of the respective funds is witnessed approximately a couple of months following the dismissal of a strategy made by the platform to acquire its competitor company Prime Trust.

BitGo Raises to $100M in a Fund Round at a Valuation of Nearly $1.75B

The beleaguered Prime Trust could eliminate almost seventy-five percent of its total employees because of the huge challenges related to the regulatory scenario and the financial conditions. Back in June this year, the crypto exchange had reportedly reached a preliminary contract with Prime Trust (a crypto custody venture that is regulated within Nevada) to purchase it. At that time, it seemed to be committed to carrying out the respective development.

Nonetheless, the deal could not turn into reality and Prime Trust submitted a Chapter 11 bankruptcy protection filing in the US Bankruptcy Court for the District of Delaware a few days ago. The respective news is also witnessed in parallel with the growth of the firm.

The Development Coincides with Platform’s Huge Growth

In this respect, BitGo has experienced a sixty percent elevation in unique consumers along with a twenty percent increase in the under-custody assets. In addition to this, the platform has also seen a two-hundred per cent rise in the case of fiat custody. Moreover, the staked assets have also surged to a great extent.

Also Read: New Zealand-based Dasset Crypto Exchange Starts Liquidation

Along with this, the company has also recently announced that it will release Go Network (a forum for instant settlements). Overall, crypto entities have witnessed several difficulties concerning investment in venture capital in recent times. This paved the way for the collapse of the top names such as Voyager Digital, Celsius Network, BlockFi, FTX, and so on.

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