BitGo CEO Reveals Pending Acquisitions Amidst Abandoned Prime Trust Deal

Following the recent decision to cancel its proposed acquisition of Prime Trust, BitGo CEO Mike Belshe has unveiled that the cryptocurrency custodian is pursuing other investment opportunities. Belshe predicts consolidation in the space over the next six months, suggesting potential upcoming developments in the industry.

BitGo’s Abandoned Prime Trust Acquisition :

BitGo’s termination of the Prime Trust acquisition on June 22 has sparked speculations about financial troubles within the target company. Despite extensive efforts to find a way forward, BitGo announced the deal’s abandonment, reiterating their unwavering commitment to establishing trust in digital assets. Prime Trust has faced challenges, including management changes, workforce reductions, and recent bankruptcy filings by its subsidiary Banq.

Concerns and Customer Shortfall:

Concerns surrounding Prime Trust’s business have led to losing clients and deposits to competitors. Nevada’s Financial Institutions Division confirmed a shortfall in customer funds, resulting in the company’s inability to fulfil withdrawal requests. These developments have raised questions about the financial stability and viability of Prime Trust in the market.

BitGo’s Acquisition Prospects and Industry Players :

BitGo had previously faced an acquisition deal with Galaxy Digital, but it was cancelled. However, BitGo remains focused on expanding its business and actively engages in discussions with various entities in the industry. Coinbase emerges as a potential suitor in the custody sector, especially after being chosen by BlackRock as the custodian for a proposed Bitcoin exchange-traded fund. Separating its custody service from its trading business may pose a future challenge for Coinbase.

BitGo’s decision to abandon the Prime Trust acquisition has paved the way for potential upcoming acquisitions in the cryptocurrency custodian space. The industry awaits further developments and potential partnerships with major players like Coinbase.