BitGo to Acquire NYDIG Institutional Trading Business in $57.5M Deal

Crypto custody firm BitGo is acquiring the institutional trading business of bitcoin-focused financial services company NYDIG in a deal worth up to $57.5 million, strengthening its position in the growing institutional cryptocurrency market.

According to a regulatory filing on Friday, BitGo will purchase NYDIG IF Holdings for $42.5 million in cash and stock. The initial consideration includes $7 million in cash and approximately $35.5 million in BitGo shares. NYDIG could receive an additional $15 million in cash if specified revenue milestones are achieved, along with potential additional stock consideration.

The transaction will significantly broaden BitGo’s existing digital asset infrastructure business. In addition to cryptocurrency custody, settlement and wallet services, the company will gain institutional capabilities spanning derivatives, structured products, financing and other crypto capital markets services.

BitGo has also granted NYDIG registration rights covering shares issued as part of the acquisition. Employees transferring from NYDIG may receive restricted stock units and cash retention awards if certain revenue targets are reached.

The acquisition reflects the increasing institutionalization of cryptocurrency markets, according to Andrew Melville, Head of Research at crypto derivatives analytics firm Block Scholes. Melville said the current crypto cycle is being driven more heavily by institutional capital than previous cycles, which were largely associated with retail demand.

That shift is pushing established crypto companies to expand institutional services, including tokenized traditional financial assets, stablecoin payment infrastructure and onchain real-world asset derivatives.

BitGo was the first cryptocurrency company to complete an IPO in 2026. The company priced its shares at $18, raising approximately $212.8 million and achieving a valuation of slightly more than $2 billion. However, BitGo shares have since fallen to around $7 amid weakness across the broader cryptocurrency market.

NYDIG, short for New York Digital Investment Group, operates across bitcoin custody, institutional trading, financing and corporate treasury services. The company also operates high-density power infrastructure supporting Bitcoin mining and artificial intelligence workloads.

NYDIG CEO Tejas Shah said the firm's institutional trading operation brings established derivatives, financing and execution capabilities that complement BitGo’s digital asset infrastructure. He added that NYDIG expects a smooth transition for both clients and employees.