A move on Celsius Bankruptcy from Galaxy Digital!
A move on Celsius Bankruptcy from Galaxy Digital! In a major development, Mike Novogratz’s Galaxy Digital has won its bid to buy assets from now-defunct crypto lender Celsius.
Galaxy Digital (GLXY), owned by Mike Novogratz, has won the right to acquire the private equity platform GK8 from cryptocurrency lender Celsius Network, the company announced on Friday. However, the terms of the agreement have not been made public.
Mike’s Strategic Buy
According to reports, Galaxy CEO Chris Ferraro said that the company paid for the asset significantly less than the $115 million Celsius paid last year.
Mike Novogratz, founder and CEO of Galaxy, says that, “The acquisition of GK8 is a crucial cornerstone in our effort to create a truly full-service financial platform for digital assets, ensuring our clients will have the option to store their digital assets at or separate from Galaxy without compromising versatility and functionality”
The transaction, which is subject to court injunctions and other restrictions, will result from a sale proceeding pursuant to Celsius Network LLC’s Chapter 11 bankruptcy.
Galaxy Digital is growing
This acquisition will help Galaxy expand the reach of its brokerage services. Mike said, “Adding GK8 to our core offering at this time is important for our company and demonstrates our focus on continuing to take advantage of Galaxy’s diverse growth opportunities. in a sustainable way,” said Mike.
This transaction will expand Galaxy’s global presence by opening an office in Tel Aviv. A team of around 40 experts, including cryptographers and blockchain technologists, will join Galaxy.
GK8 founder Lior Lamesh and CTO Shahar Shamai will continue to lead Galaxy’s innovative technology business.
Speaking about the deal, Lamesh said that, “We are excited by the prospect of joining one of the leading providers of financial and digital asset services to institutions who truly understand the impact of GK8’s custody technology on the future of blockchain.”
He went on to say that “With the support of Galaxy, we aim to introduce new and exciting offerings to the industry that reflect the combination of the best functions of Galaxy and GK8’s unparalleled cryptography, security and skills R & D. . »
Galaxy Digital price reaction
Galaxy Digital’s “GLXY” stock price responded positively to the news of the acquisition agreement. It rose by 1.5% and is currently trading at $4.22 at the time of writing.