NYDIG transfers institutional trading to BitGo as it focuses on more than 3 GW of power

NYDIG transferred its institutional trading business to BitGo as it concentrates resources on power, Bitcoin mining and high-performance-computing data centers. The upfront consideration is roughly $42.5 million. The merger agreement covers spot and derivatives trading, virtual-currency asset management, borrowing and lending, and loan servicing. The agreement excludes NYDIG's Bitcoin mining and custody businesses. Approximately 30 NYDIG employees and institutional client trading relationships joined BitGo. The team adds derivatives, structured products, financing and capital-markets capabilities to BitGo's custody, trading and settlement platform. The upfront consideration includes $7 million in cash, subject to holdback and adjustments. The agreement uses a $5.9829 reference price. BitGo will issue 5,933,577 shares. The shares are valued at about $35.5 million. NYDIG can receive additional earn-out payments. The first earn-out provides $10 million in cash. The second provides $5 million in cash and 835,715 BitGo shares. The second share payment is worth roughly another $5 million at the reference price. Separate awards targeting $10 million are intended for transferred employees rather than NYDIG. The earn-outs depend on trailing-12-month revenue hurdles of $45 million and $70 million through February 2028. Expenses required to reach those hurdles remain undisclosed. BitGo's second-quarter filing reported $4.197517 billion in Digital Asset Sales revenue for the three months ended June 30. The filing reported $4.190435 billion in direct costs for that line. The difference was $7.082 million. That difference equaled about 16.9 basis points of revenue. BitGo separately reported a $19.025 million consolidated net loss for the quarter. BitGo said it presents most digital-asset sales on a gross basis because it acts as principal. The quarter ended before BitGo announced the completed transaction on Aug. 27. Public filings do not disclose the acquired unit's historical revenue, profit, asset contribution or cost structure. NYDIG's Power & Compute page says the company owns generation assets, grid positions and data-center halls. The facilities support high-performance computing, AI training, AI inference and Bitcoin mining. NYDIG describes a North American footprint exceeding 3 GW. The acquisition announcement says more than 1 GW is deliverable in 2027 and 2028. NYDIG has not disclosed current online capacity, contracted capacity, tenant revenue, construction cost, financing cost, utilization or project returns. In March 2025, NYDIG announced an agreement to acquire Crusoe's Bitcoin mining business, subject to approvals. The current transaction covers institutional trading and related assets. Mining and custody remain excluded from the agreement.