Friday, February 3, 2023
 

Galaxy Digital All Set To Acquire Custody Platform GK8 From Celsius

  • Galaxy Digital will be acquiring Celsius Network’s GK8 business.
  • The acquisition was made at  $44.1 million.
  • $44 million is 60% lower than what Celsius paid to buy GK8.

According to reports, Galaxy Digital, the financial services, and investment management company, will be paying $44.1 million to buy Celsius Network’s GK8 business. However, this amount is more than 60% lower than what Celsius paid to buy the platform last year. At the time, Celsius paid $115 million.

The takeover was previously announced earlier last week, yet there are pending court approvals that need to be cleared. Also, following the acquisition, Galaxy will have 40 more employees integrated into its organization.

In a press release released earlier, it was stated: The acquisition will be the result of a sale process executed in connection with Celsius Network LLC’s Chapter 11 bankruptcy and is subject to court approvals and other closing conditions.

Regarding the acquisition, Mike Novogratz, Founder, and CEO of Galaxy stated that the acquisition of GK8 was a crucial cornerstone in their effort to create a truly full-service financial platform for digital assets, ensuring their clients will have the option to store digital assets at or separate from Galaxy without compromising versatility and functionality.

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.

The entire deal was finalized at the final price of $44 million, which will be paid in cash. Moreover, $100,000 will be provided in assumed liabilities. Reportedly, six firms had placed bids for the auction but only Galaxy’s final bid was approved. One of the terms the company had set during the acquisition was that GK8 co-founders Lior Lamesh and Shahar Shamai stay with the company.

  • Galaxy Digital will be acquiring Celsius Network’s GK8 business.
  • The acquisition was made at  $44.1 million.
  • $44 million is 60% lower than what Celsius paid to buy GK8.

According to reports, Galaxy Digital, the financial services, and investment management company, will be paying $44.1 million to buy Celsius Network’s GK8 business. However, this amount is more than 60% lower than what Celsius paid to buy the platform last year. At the time, Celsius paid $115 million.

The takeover was previously announced earlier last week, yet there are pending court approvals that need to be cleared. Also, following the acquisition, Galaxy will have 40 more employees integrated into its organization.

In a press release released earlier, it was stated: The acquisition will be the result of a sale process executed in connection with Celsius Network LLC’s Chapter 11 bankruptcy and is subject to court approvals and other closing conditions.

Regarding the acquisition, Mike Novogratz, Founder, and CEO of Galaxy stated that the acquisition of GK8 was a crucial cornerstone in their effort to create a truly full-service financial platform for digital assets, ensuring their clients will have the option to store digital assets at or separate from Galaxy without compromising versatility and functionality.

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.

The entire deal was finalized at the final price of $44 million, which will be paid in cash. Moreover, $100,000 will be provided in assumed liabilities. Reportedly, six firms had placed bids for the auction but only Galaxy’s final bid was approved. One of the terms the company had set during the acquisition was that GK8 co-founders Lior Lamesh and Shahar Shamai stay with the company.

 

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