BitGo acquires NYDIG institutional trading division for $42.5 million

By Melinda Lucy About Melinda melinda.lucy@americanbanker.com LinkedIn

Digital asset firm BitGo Holdings has acquired the institutional trading business of NYDIG, a provider of power and high-performance computing services.

The deal, announced on Friday, expands BitGo's institutional offerings less than a year after receiving approval for a national trust bank charter from the Office of the Comptroller of the Currency (OCC) last winter. According to an SEC filing, the transaction closed for approximately $42.5 million, comprising $7 million in cash and $35.5 million in BitGo stock.

"This is what a maturing crypto industry looks like," said Srikant Yennamandra, global head of digital assets for Accenture. "Some firms are betting on the economics of infrastructure, power and compute, while others [like BitGo] are focused on owning the institutional relationship by building integrated platforms that mirror the services institutional investors expect from traditional finance. They're two different views of where long-term value will sit, and we could continue to see consolidation as firms vertically integrate to strengthen their position."

Deal Details

BitGo stated that the acquisition is expected to expand its institutional markets platform by enhancing existing trading offerings. Key terms of the transaction include:

• Approximately 30 NYDIG employees joining BitGo
• Transfer of NYDIG's existing institutional client trading relationships
• Up to $15 million in cash contingent on achieving unnamed revenue milestones
• $5 million each in cash and stock retention awards for transferred employees upon hitting revenue milestones (per SEC filing)

"Institutions increasingly want to work with a trusted partner that can support the full lifecycle of digital assets, from custody and trading to financing and settlement," said Mike Belshe, co-founder and CEO of BitGo.

Industry Perspective

Stephen Aschettino, partner at Fox Rothschild and chair of the firm's fintech and digital assets division, described the deal as "not a retreat" for NYDIG, which was previously impacted by the crypto industry downturn.

"[It] is a disciplined capital-allocation decision," Aschettino said. "The company retains its Bitcoin mining operations and a power-generation and high-performance-computing pipeline. Divesting the trading arm lets NYDIG concentrate management attention and balance-sheet resources on that infrastructure buildout, without the operational complexity of running a client-facing institutional markets business in parallel."

Aschettino noted that the deal signals a broader trend: the institutional digital-asset market is maturing to the point where regulatory credentials offer a competitive advantage.

"We should expect continued consolidation along these lines as the OCC charter framework takes hold, and the market rewards platforms that can offer institutional clients a cohesive, federally supervised suite of services."

He described BitGo's acquisition as "a textbook example" of a digital asset infrastructure provider using its regulatory moat — a business advantage created by government licensing — to build a full-service institutional platform.

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Mike Belshe, co-founder and chief executive officer of BitGo, speaks during an interview during the company's initial public offering on the floor at the New York Stock Exchange on Jan. 22, 2026.