Mike Novogratz’s Galaxy Digital has won the bid to acquire GK8, a self-care crypto company.
Celsius acquired GK8 for the first time in November 2021 for $115 million. After Celsius filed for bankruptcy, the personal care company was put up for auction as part of Celsius’ proceedings.
The acquisition cost was not disclosed today, but a Galaxy Digital representative said Decrypt that “the purchase price we agreed upon was significantly lower than what the GK8 had previously been purchased for.”
GK8 did not immediately respond to DecryptComment request. The deal is still subject to bankruptcy court approval.
GK8 will reportedly play a major role in Galaxy Digital’s corporate offering, GalaxyOne, which provides customers with secure offline crypto storage (often referred to as cold storage).
today, @employee, an innovative financial services and investment management company in the digital assets, cryptocurrency and blockchain technology sectors, has announced its intention to acquire GK8. Read more: https://t.co/eRVaB8pJHg
Custody wallets involve storing funds on an exchange or with a lender and hot wallets Such as metamask or WalletConnect connected to the Internet, cold storage involves storing cryptocurrency in wallets that are isolated from the Internet. Hardware wallets like Trezor and Ledger are another form of cold storage.
“Adding the GK8 to our flagship offering at this pivotal moment for our industry also demonstrates our continued willingness to take advantage of strategic opportunities to sustainably grow Galaxy.” He said Novogratz in a prepared statement.
The acquisition also comes months after Galaxy pulled out of its handset SuggestionA deal worth $1.2 billion For another crypto custodian, BitGo.
The last company, then Archived Galaxy sued for “improper disavowal and willful breach of the Merger Agreement with BitGo”.
Novogratz Galaxy has been infected with a crypto infection
Despite the buying today, Novogratz has also been affected by the ill-fated cryptocurrency trade this year.
The billionaire CEO has suffered not just one catastrophic cryptocurrency crash, but two.
Once a supporter of the Cosmos-based Project Terra and its founder Do Kwon, Novogratz called the project’s implosion in May “a big idea that failed.” He added that his Terra tattoo would serve as a “constant reminder that investing in projects requires humility”.
Then in November, Galaxy revealed in its third-quarter earnings report roughly $77 million In exposure to the now collapsing cryptocurrency exchange FTX.
Novogratz was particularly critical of stock exchange founder Sam Bankman-Fred, who made a splash after appearing in the media after his company was declared bankrupt.
“Sam and his colleagues maintained a fraud, using clients’ money to do what mismanaged risk,” he said Tellbloomberg.
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