Crypto-focused FinTech company Galaxy Digital has acquired a custody platform from Celsius, which has filed for bankruptcy.
Celsius had put some of its assets up for sale after filing for bankruptcy in July following the downturn in the crypto market. Recently, it has come to the fore that Galaxy Digital will buy these assets. Not long after, the FinTech company won an auction for the acquisition of its custody platform.
Galaxy Digital said in a statement that it has won an auction to buy custody platform GK8 from bankruptcy filing Celsius Network. Terms of the deal were not disclosed, but Galaxy spokesperson Michael Wursthorn said the price was significantly less than Celsius paid a year ago. As reported, Celsius purchased the GK8 for $115 million in November 2021.
Galaxy’s goal of acquiring the custody platform is to expand its brokerage services. Around 40 people will join Galaxy’s team, including blockchain engineers and cryptographers. Mike Novogratz, founder and CEO of Galaxy, said in his statement:
“Adding GK8 to our core offering at this important moment for our industry also highlights our willingness to continue to leverage strategic opportunities to grow Galaxy sustainably.”