BitGo CEO Expects Further Industry Consolidation as Company Plans More Acquisitions

BitGo, a cryptocurrency custodian, has announced that it has more acquisitions pending after abandoning its proposed purchase of Prime Trust. According to BitGo CEO Mike Belshe, the company is highly optimistic about further consolidation in the industry over the next six months. On Monday, Belshe told CoinDesk TV’s First Mover, “I haven’t been able to announce them yet, but I think there’s going to be consolidation in the space over the next six months.”

BitGo was unable to acquire Prime Trust due to rumours of the latter’s bankruptcy, which was confirmed by the Nevada’s Financial Institutions Division (FID) stating that Prime Trust had “a shortfall in customer funds” and was unable to meet all withdrawal requests this month. Following Galaxy Digital’s cancellation of the $1.2 billion deal to buy BitGo in August, offers have since come “from time to time,” as said by Belshe. However, the CEO has stated that BitGo is now more focused on growing its business rather than being acquired.

The custody sector may potentially have a buyer in the form of Coinbase, a crypto exchange firm, which was recently selected as the custodian for BlackRock’s iShares’ proposed Bitcoin exchange-traded fund (ETF). Coinbase is a publicly trading company with a healthy balance sheet, and according to Belshe, one of the few first movers who get involved in early acquisitions. However, Coinbase may be forced to separate its custody service from its trading business at some point.

Belshe also mentioned that BitGo has been approached by almost every significant deal in the custody space and that BlackRock CEO Larry Fink has his contact information. In conclusion, BitGo has high hopes for the industry, with the company’s reputation growing as a reliable and trustworthy crypto custodian.