Galaxy Digital Wins Bid To Acquire Bankrupt Celsius’ GK8 Platform

Insolvent Crypto Lender ‘Celsius’ Granted Extension by Court
  • The details of the arrangement, however, were kept under wraps.
  • The business acquired the assets for far less than the $115 million Celsius paid in 2021.

This past Friday, insolvent cryptocurrency lender Celsius Network reported that Galaxy Digital (GLXY), founded by Mike Novogratz, had won an auction to buy the GK8 self-custody platform. The details of the arrangement, however, were kept under wraps.

Galaxy’s co-president, Chris Ferraro, reportedly said that the business acquired the assets for far less than the $115 million Celsius paid for them in 2021.

CEO and founder of Galaxy Mike Novogratz stated:

“The acquisition of GK8 is a crucial cornerstone in our effort to create a truly full-service financial platform for digital assets, ensuring our clients will have the option to store their digital assets at or separate from Galaxy without compromising versatility and functionality.”

Global Footprint Expansion

This sale will be finalized in line with the Chapter 11 bankruptcy process for Celsius Network LLC. And is subject to customary closing conditions. Since acquiring this company, Galaxy will be able to provide a wider variety of prime brokerage services.

Furthermore, a new office for Galaxy will be established in Tel Aviv as a consequence of the deal. Increasing the company’s global footprint. About forty experts, including cryptographers and blockchain developers, will be joining Galaxy.

Galaxy has hired GK8’s former chief executive officer Lior Lamesh and chief technology officer Shahar Shamai to head up its new custodial technologies division.

Former GK8 CEO stated:

“We are excited by the prospect of joining one of the leading providers of financial and digital asset services to institutions who truly understand the impact of GK8’s custody technology on the future of blockchain.”

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