BitGo CEO, Mike Belshe, recently announced that despite abandoning the Prime Trust deal, the company has multiple other acquisitions in progress. In an interview with CoinDesk TV, Belshe mentioned that there are pending acquisitions that have not been publicly announced yet. He also predicted that the cryptocurrency industry would witness consolidation within the next six months.
Cancellation of Prime Trust Deal
BitGo, an American-based crypto custodian platform, decided to cancel the acquisition of Prime Trust on June 22. The cancellation came amidst speculations of Prime Trust facing bankruptcy challenges. Initially, the acquisition was expected to provide financial support to Prime Trust in dealing with these challenges. However, Belshe confirmed that the deal was no longer feasible, leading to its abandonment.
The Future of BitGo
During the interview, Belshe also shed light on the future plans of BitGo. Previously, the California-based company was on the verge of being acquired by Mike Novogratz’s crypto merchant bank, Galaxy Digital, in a $1.2 billion deal. However, this deal was ultimately canceled in August 2021. Belshe mentioned that BitGo has received offers from various entities since the cancellation of the Galaxy’s deal. However, the company is now more focused on expanding its business rather than seeking acquisition by a major player.
The Case of Coinbase
Belshe also discussed Coinbase, the American exchange that BlackRock selected as the custodian for its fund-management unit iShares’ proposed Bitcoin ETF. He noted that Coinbase, being a public company with a solid financial standing, often benefits from being an early mover in the industry. However, Belshe suggested that Coinbase might eventually have to separate its custody service from its trading business. He emphasized the need for Coinbase to make a decision on whether it wants to prioritize being a custodian or an exchange.
In addition, Belshe revealed that BitGo is actively engaged in discussions with numerous prominent entities. Even Larry Fink, CEO of BlackRock, has personally contacted Belshe. This indicates the growing recognition and interest in BitGo’s services within the cryptocurrency industry.
Overall, BitGo’s CEO remains optimistic about the company’s future. Despite the setback with the Prime Trust deal, Belshe believes that BitGo has a promising path ahead, with pending acquisitions and a focus on expanding its business operations.