Galaxy Digital Wins Auction to Acquire Crypto Custodian GK8 During the Celsius Bankruptcy

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Last Updated on December 3, 2022 by Bitfinsider

Galaxy Digital has won the battle to purchase GK8, a self-custody cryptocurrency company.

Celsius initially bought GK8 in November 2021 for $115 million. Following Celsius’s bankruptcy filing, the self-custody company was auctioned off as part of Celsius’ proceedings.

Today’s purchasing amount was not published, but a Galaxy Digital spokesman said that “the purchase price we settled upon was far less than what GK8 was acquired for earlier.”

GK8 did not react to requests for comment immediately. The transaction is still subject to approval by the bankruptcy court.

Reportedly, GK8 will play a crucial part in Galaxy Digital’s institutional service GalaxyOne, providing clients with safe crypto storage without the need for an internet connection (often called cold storage).

Whereas custodial wallets entail holding money on an exchange or with a lender and hot wallets like as MetaMask and WalletConnect are linked to the internet, cold storage includes storing cryptocurrencies on wallets that are disconnected from the internet. Hardware wallets like Trezor and Ledger are an additional type of cold storage.

Novogratz said in a prepared statement, “Adding GK8 to our premier offering at this important time for our industry demonstrates our continuous determination to capitalize on strategic opportunities to develop Galaxy sustainably.”

The transaction comes months after Galaxy abandoned a $1.2 billion plan to acquire BitGo, another cryptocurrency custodian.

Galaxy was then sued by BitGo for “improper repudiation and willful breach of its merger agreement with BitGo.”

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.