Galaxy Digital Wins a Bid to Acquire Self-Custody Platform GK8

Galaxy Digital Wins a Bid to Acquire Self-Custody Platform GK8

Galaxy Digital CEO Mike Novogratz stated that the GK8 acquisition is a part of the company's plans to "create a truly full-service financial platform for digital assets.”

Galaxy Digital, a financial services and investment management firm established in 2018, is set to acquire an institutional digital asset self-custody platform, GK8.

According to the press release shared by Galaxy Digital, the acquisition is a part of the auction “executed in connection with Celsius Network LLC's Chapter 11 bankruptcy.”

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It is worth noting that Celsius Network purchased GK8 in November 2021 for $115 million. In its press release, Galaxy Digital did not reveal the price it was bidding.

After completing acquisition proceedings, Galaxy Digital will be adding GK8’s team of around 40 people, including blockchain engineers and cryptographers, to its workforce. On top of that, Galaxy Digital will obtain GK8’s office in Tel Aviv.

In the press release, Galaxy Digital highlighted that it will support “GK8's ongoing operations” and utilize “GK8's custody solution in the ongoing development of GalaxyOne.”

When talking about the acquisition, Galaxy founder and CEO Mike Novogratz stated that the acquisition is a “crucial cornerstone in our effort to create a truly full-service financial platform for digital assets.”

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.

Galaxy Digital’s press release read that GK8 allows institutions to custody their digital assets, using “patented technology” to store cryptocurrencies and complete blockchain transactions without the internet.

The press release stated that despite the acquisition, current GK8 founders, CEO Lior Lamesh and CTO Shahar Shamai, will remain in their positions and lead the business

In a press release, LGK8 CEO Lior Lamesh stated that Galaxy Digital “truly understands the impact of GK8's custody technology on the future of blockchain.” On top of that, Lamseh added:

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.

Celsius started bankruptcy proceedings on July 13th.

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree


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