Galaxy Digital Acquires Custodian GK8 From Celsius

Galaxy Digital has won an auction to purchase the self-custody platform GK8 from the bankrupt cryptocurrency lender Celsius Network.

In the ongoing development of GalaxyOne, a new prime offering for institutional investors that combines trading, lending, cross-portfolio margining, and derivatives with the company’s risk-management processes, Galaxy will support GK8’s self-custody solution.

The acquisition, according to Mike Novogratz‘s firm, is a crucial cornerstone in the firm’s effort to build a full-service financial platform for digital assets. Galaxy’s workforce will expand by around 40 employees, including cryptographers and blockchain developers.

“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,” Novogratz said.

The deal’s terms were not disclosed, but Galaxy spokesman Michael Wursthorn claimed it was significantly less than what Celsius paid a year earlier.

Following a fall in the cryptocurrency market, Celsius filed for bankruptcy in July and listed some of its assets for sale. According to reports, Celsius paid $115 million for GK8 in November 2021.

Galaxy Digital is a global crypto-focused financial services firm with considerable experience in the digital assets, cryptocurrency and blockchain technology sector. The company was founded in 2018 and is composed of a team of long-tenured institutional experienced professionals managing third-party capital across traditional and alternative asset classes.

Crypto asset manager Galaxy Digital has revealed that it has tens of millions of dollars worth of exposure to embattled crypto exchange FTX. In a new quarterly financial update, the company says it has an exposure of about $76.8 million of cash and digital assets to FTX, $47.5 million of which it is currently attempting to withdraw.

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