Galaxy Digital, a crypto-focused financial services company founded by Mike Novogratz, has won an auction to acquire self-custody platform GK8 from insolvent crypto lender Celsius Network.
The deal’s terms and conditions were not revealed, but the price was significantly less than what Celsius paid a year ago, according to Michael Wursthorn, a spokesman for Galaxy. Celsius acquired GK8 in November 2021 for $115 million.
With this acquisition, the firm intends to extend its premier brokerage services. Galaxy will establish a new office in Tel Aviv, Israel. About 40 individuals, including blockchain developers and cryptographers, will join Galaxy’s team.
Novogratz, the founder and CEO of Galaxy, stated in a press release that adding GK8 to their prime offering at this important time for the crypto industry displays their continued determination to take advantage of strategic possibilities to build Galaxy sustainably.
Celsius filed for bankruptcy in July and listed several of its assets for sale in response to a decline in the crypto market.
On the other hand, Galaxy has abandoned its attempt to acquire BitGo for $1.2 billion. Galaxy stated in August that BitGo had failed to deliver financial statements by the July 31 deadline. In September, BitGo filed a lawsuit against Galaxy in response to the annulment of the contract.