Galaxy Digital Plunges $44M to Acquire Institutional Crypto Custody Firm, GK8
Reports indicate that Mike Novogratz’s Galaxy Digital has completed its acquisition of the institutional crypto custody company GK8. Galaxy Digital aims to tap into the GK8’s proprietary asset storage and management features.
A $44 Million Investment In GK8
GK8 is a leading institutional crypto custody platform with a properly patented digital custody technology to provide well-secured asset management for institutional clients. The firm specializes in cold vault storage, allowing for transaction procession without an internet connection.
In addition, the platform’s in-house multi-party computation (MPC) system automates transactions and provides access to decentralized finance (DeFi) features like tokenization and trading. Commenting on the latest acquisition, CEO of Galaxy Digital, Mike Novogratz, stated that the increased investor demand for crypto custody services is the reason for the purchase of GK8.
Novogratz added that GK8’s storage solutions and proprietary wallet technology would be integrated into Galaxy Digital’s upcoming brokerage project, GalaxyOne. The latest purchase will see Galaxy announce its presence in Tel Aviv, the capital of Israel, with close to 40 GK8 workforce becoming part of the company’s wider headcount.
Shahar Shamai and Lior Lamesh, GK8 founders, will continue to spearhead Galaxy’s custodial services offering in Israel through the acquisition phase. The new brokerage platform, GalaxyOne, will offer numerous crypto-related financial services to institutional users upon its launch.
Such services include lending, trading, derivatives, and custodial offerings of GK8. Galaxy Digital doubled its crypto investments last December after announcing a $65 million takeover of the Argo Blockchain’s main mining pool.
Accordingly, the mining company sold its primary facility as it struggled to avoid bankruptcy after a tumultuous year for the industry.
Mike Novogratz On Bitcoin
In a recent report, the CEO of Galaxy Digital said that he would be excited if Bitcoin were to end 2022 at $30,000. At the Bank of America conference in mid-February, Novogratz noted that considering Bitcoin price action this year, it would have been a milestone if BTC’s price jumped to $30,000 to end 2022 on a high.
Going by Novogratz’s history of making predictions about the price of Bitcoin, the recent forecast turned out to be lower than the previous ones he made. He reportedly predicted last year that the price of Bitcoin could attain $500,000 at the end of 2027, subject to the US Federal Reserve continuing its interest rates hike.
During last week’s conference, the CEO cited the recent rate hike announced by the Fed chair, Jerome Powell, adding that he did not expect the Fed to change its stance soon. After the Fed interest rate hike to 25 basis points on February 1, Powell stated that inflation in the United States is steady at the low, triggering a significant jump in the price of Bitcoin.
As a result, Novogratz confirmed that he is skeptical of Powell’s change of tune because he is doing the opposite of what he said.
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