To access its exclusive asset management and storage capabilities, Galaxy Digital A $44 million investment was made in an institution-level bitcoin custody platform.
Mike Novogratz, a cryptocurrency investor business, successfully closed the purchase of GK8, which is a company that created a patent-based bitcoin custody system in order to provide safe asset management for institutional clients.
The company specializes in cold vault technology. This allows transactions to be completed even without an internet connection. It can automate transactions because of its in-house multiparty computation (MPC vault), and it also offers access to decentralized financial (DeFi) networks and tokenization.
Novogratz released a statement stating that the primary motivator for the purchase of GK8 was the increasing demand for custody services from investors. GalaxyOne, the leading brokerage platform, will incorporate GK8’s cold storage solutions as well as wallet technologies. Galaxy Digital will release it soon.
Galaxy will now have a Tel Aviv location, and will employ approximately 40 people previously employed by GK8 as a result. Shahar Shamai and Lior Shamai, cofounders of GK8, will continue their leadership roles in Galaxy’s custodial technologies offerings after the company is acquired.
GalaxyOne will provide institutional-grade customers with access to a wide range of bitcoin financial services at the time it is launched. This will include trading, lending, derivatives and cross-portfolio margining. GK8 will manage all of these.
Galaxy announced in December 2022 that it had purchased Argo Blockchain’s primary mining operations for $65 million. Galaxy wanted to double down its investment in cryptocurrency mining. The mining company had to sell its Helios mining facility in order to avoid bankruptcy during a difficult year for the industry.