Crypto Markets Today: Galaxy Digital Expands Brokerage Services With GK8 Acquisition

The cryptocurrency-focused financial services firm won an auction to buy the company from crypto lender Celsius, which filed for Chapter 11 bankruptcy protection.

AccessTimeIconDec 2, 2022 at 9:51 p.m. UTC
Updated Dec 5, 2022 at 5:24 p.m. UTC
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Mike Novogratz's cryptocurrency-focused, financial-services firm Galaxy Digital has won an auction to buy self-custody platform GK8 from embattled crypto lender Celsius Network, Galaxy said in a press release Friday.

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  • Celsius had put a few of its assets up for sale after filing for bankruptcy in July following a downturn in the crypto market.
  • Terms of the deal weren't disclosed, but Galaxy spokesman Michael Wursthorn said the price was materially less than what Celsius had paid a year ago. Celsius had acquired GK8 in November 2021 for $115 million, as reported.
  • Galaxy's aim with the acquisition is to expand its prime brokerage offering. Around 40 people would be joining Galaxy's team, including blockchain engineers and cryptographers.
  • Expand Galaxy's global footprint with a new office in Tel Aviv, Israel, is a major outcome of the deal, which is subject to regulatory approval. “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,” Novogratz, founder and CEO of Galaxy, said in the release.
  • Previously, in August, Galaxy abandoned its plan to buy crypto custody specialist BitGo for $1.2 billion. At the time Galaxy said BitGo had failed to provide financial statements by a deadline of July 31. The cancellation of the deal prompted BitGo to sue Galaxy for damages in September.

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Jocelyn Yang

Jocelyn Yang is a markets reporter at CoinDesk. She is a recent graduate of Emerson College's journalism program.

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