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Mike Novogratz-led investment firm Galaxy Digital Holdings has won the bidding to buy\u00a0GK8, an institutional digital asset self-custody platform owned by Celsius Network \u2014 pending court approvals and certain closing conditions.<\/p>\n
According to a Dec. 2 blog post<\/a> from GK8 and a press release<\/a> from Galaxy, if the acquisition goes ahead, Galaxy will acquire the platform’s nearly 40-strong team as part of the deal including cryptographers and blockchain engineers and an office in Tel Aviv.<\/p>\n GK8 is a self-custody platform for managing blockchain-based assets which offers custody, staking, DeFi, NFT support, tokenization and trading.<\/p>\n The team behind the platform claims it can run secure blockchain transactions without being connected to the internet, severely reducing the risks of hacks. <\/p>\n Celsius acquired GK8 in 2021<\/a> for $115 million, though Galaxy has not disclosed how much it offered during the bidding process.\u00a0<\/p>\n Mike Novogratz, founder and CEO of Galaxy called the acquisition a \u201ccrucial cornerstone in our effort to create a truly full-service financial platform for digital assets.\u201d <\/p>\n “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,” he added. <\/p>\n Galaxy intends to support GK8’s ongoing operations while utilizing its technology to develop its trading platform GalaxyOne it said. <\/p>\n GK8 founders, including CEO Lior Lamesh and CTO Shahar Shamai, are expected to stay with the company and lead Galaxy’s new custodial business.<\/p>\n “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,” Lamesh said. <\/p>\n Related: <\/em><\/strong>Mike Novogratz: Bankman-Fried is \u2018delusional\u2019 and headed to jail<\/em><\/strong><\/a><\/p>\n Celsius has been undergoing bankruptcy proceedings<\/a> since filing for Chapter 11 bankruptcy protection<\/a> on Jul. 13, discussing plans to sell some of its assets.<\/p>\n In the court filing, Celsius CEO Alex Mashinsky indicated the company could<\/a> sell Bitcoin (BTC)<\/a> mined by its mining operation to help repay at least one of its loans and provide revenue for the company in the future.<\/p>\n While in a Sept. 15 filing with the United States Bankruptcy Court for the Southern District of New York, Celsius asked for permission to sell its stablecoin<\/a> holdings. <\/p>\n Galaxy Digital was recently named in a $100 million lawsuit by\u00a0institutional crypto custodian service and wallet operator BitGo for dropping its plans to acquire the firm.\u00a0<\/p>\n Galaxy terminated the May, 2021 agreement to acquire the firm on Aug. 15, 2022, citing\u00a0a breach of contract <\/a>by BitGo when it allegedly failed to deliver audited financial statements by July 31, 2022.\u00a0<\/p>\n BitGo then revealed in Sept. 13 post that\u00a0it was seeking more than $100 million<\/a> in damages, accusing Galaxy of \u201cimproper repudiation\u201d and \u201cintentional breach\u201d of its acquisition agreement with BitGo. <\/p>\n<\/div>\n