In short: Bitgo has signed a letter of intent to acquire Nevada-based crypto custodian Prime Trust amid speculation of its potential bankruptcy. Following this acquisition, Prime Trust would become part of Bitgo's network of regulated trust companies. Bitgo CEO Mike Belshe said the acquisition would lead to a greater shift in the digital assets landscape toward a more secure and sustainable future. If the acquisition proceeds, Bitgo would acquire Prime Trust's banking partners, crypto IRA, and existing payment networks.
Our quick analysis:
Digital asset trust firm Bitgo is reportedly expected to acquire Prime Trust, a Nevada-based crypto custodian, according to a recent announcement. Following speculation and unfounded rumors surrounding Prime Trust's financial woes, Bitgo signed a letter of intent signaling its intention to acquire the custodian and onboard it fully onto its network of regulated trust companies.
Meanwhile, last year, Prime Trust was embroiled in a legal battle with now-defunct crypto lender Celsius, who accused the custodian of not returning $17 million in crypto assets in August 2022. However, Prime Trust went on to settle the claim in October 2022, transferring the funds to a wallet designated by Celsius.
Before the Celsius incident, Prime Trust secured $107 million in a Series B funding round in June 2022, over a month earlier, and raised $65 million in a Series A round the previous year. However, following the industry downturn, two unnamed sources claimed that the custodian had laid off one-third of its employees in early 2023.
Bitgo CEO and co-founder, Mike Belshe, hailed the expected acquisition as a "landmark transaction." Belshe added that the move would lead to a more secure and sustainable future for the digital asset landscape and position Bitgo to enhance its best-in-class solutions while servicing the combined customer base.
The proposed acquisition means that Bitgo will also incorporate Prime Trust's infrastructure, exchange network, banking partners, crypto IRA, and current payment networks. The deal will undoubtedly enhance Bitgo's offerings across custody, liquidity, settlement, and regulatory compliance.
Speculation has run rife on social media that Scott Purcell founded both Fortress Trust and Prime Trust, which Purcell exited in August 2021 after over five years. In a LinkedIn post, Purcell denied any connection between the two companies, emphasizing that he exited Prime Trust two years prior.
The proposed deal is a significant enhancement for the industry, according to Prime Trust's interim CEO and President, Jor Law. What are your thoughts on Bitgo's planned acquisition of Prime Trust? Share your opinions and comments below.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
Digital asset trust firm Bitgo is reportedly expected to acquire Prime Trust, a Nevada-based crypto custodian, according to a recent announcement. Following speculation and unfounded rumors surrounding Prime Trust's financial woes, Bitgo signed a letter of intent signaling its intention to acquire the custodian and onboard it fully onto its network of regulated trust companies.
Meanwhile, last year, Prime Trust was embroiled in a legal battle with now-defunct crypto lender Celsius, who accused the custodian of not returning $17 million in crypto assets in August 2022. However, Prime Trust went on to settle the claim in October 2022, transferring the funds to a wallet designated by Celsius.
Before the Celsius incident, Prime Trust secured $107 million in a Series B funding round in June 2022, over a month earlier, and raised $65 million in a Series A round the previous year. However, following the industry downturn, two unnamed sources claimed that the custodian had laid off one-third of its employees in early 2023.
Bitgo CEO and co-founder, Mike Belshe, hailed the expected acquisition as a "landmark transaction." Belshe added that the move would lead to a more secure and sustainable future for the digital asset landscape and position Bitgo to enhance its best-in-class solutions while servicing the combined customer base.
The proposed acquisition means that Bitgo will also incorporate Prime Trust's infrastructure, exchange network, banking partners, crypto IRA, and current payment networks. The deal will undoubtedly enhance Bitgo's offerings across custody, liquidity, settlement, and regulatory compliance.
Speculation has run rife on social media that Scott Purcell founded both Fortress Trust and Prime Trust, which Purcell exited in August 2021 after over five years. In a LinkedIn post, Purcell denied any connection between the two companies, emphasizing that he exited Prime Trust two years prior.
The proposed deal is a significant enhancement for the industry, according to Prime Trust's interim CEO and President, Jor Law. What are your thoughts on Bitgo's planned acquisition of Prime Trust? Share your opinions and comments below.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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