BitGo buys NYDIG trading arm for $42.5M plus $15M earnout

BitGo is buying NYDIG IF Holdings, the institutional trading business of NYDIG. The transaction includes $42.5 million in cash and stock. The deal includes a $15 million cash earnout tied to revenue milestones. The $42.5 million consists of $7 million in cash and about $35.5 million in BitGo stock. The transaction may include additional stock. BitGo granted NYDIG registration rights for the BitGo shares issued. BitGo agreed to issue restricted stock units and cash retention awards to transferred employees after a revenue milestone is met. The acquisition expands BitGo's custody, settlement and wallet business into derivatives, structured products, financing and other capital markets services. Andrew Melville of Block Scholes said the acquisition reflects wider institutionalization in crypto markets.