2 years ago
In a caller development, Bitgo, the integer plus spot firm, disclosed that it has penned a missive of intent to get Prime Trust, a crypto custodian based successful Nevada. Should the acquisition proceed, Prime Trust would go an integral portion of Bitgo’s web of regulated spot companies.
Bitgo Signs Letter of Intent to Acquire Crypto Custodian Prime Trust Amid Speculative Chatter
Bitgo reports that they person signed a missive indicating their intent to get Prime Trust. The announcement follows speculative chatter and multiple rumors connected social media that suggest Prime Trust was grappling with fiscal struggles and imaginable bankruptcy. Last year, Prime Trust recovered itself successful a ineligible quality with the now-defunct crypto lender Celsius aft they accused the custodian of failing to instrumentality $17 cardinal successful crypto assets successful August 2022.
In October 2022, Prime Trust consented to instrumentality the $17 cardinal and stated that it would transportation the funds to a wallet designated by Celsius. Prior to Celsius’ grievance successful August, the custodian had secured $107 cardinal during a Series B backing circular implicit a period earlier successful June. Preceding the Series B, Prime Trust’s Series A circular raised $65 cardinal successful July 2021. Following the crypto wintertime successful 2022, however, 2 unnamed sources reported that Prime Trust laid disconnected one-third of its employees successful aboriginal 2023.
On June 8, 2023, Bitgo unveiled its volition to procure Prime Trust and get afloat equity from genitor institution Prime Core Technologies.
“This is simply a landmark transaction, starring a greater displacement successful the integer plus scenery toward a much unafraid and sustainable future,” Bitgo CEO and co-founder Mike Belshe said connected Thursday. “With the expected acquisition of Prime Trust, Bitgo is good positioned to heighten its best-in-class, trusted solutions and to work the combined lawsuit base.”
Prime Trust collaborated with entities specified arsenic Abra, Okcoin, Augeo, Swan Bitcoin, and Trusttoken. Swan Bitcoin disclosed this May that it had shifted its assets into custody with Fortress Trust and Bitgo. Speculation has besides circulated connected societal media regarding Scott Purcell founding some Prime Trust — which helium near successful August 2021 aft implicit 5 years — and Fortress Trust successful October 2021. In a Linkedin post, Purcell rejected immoderate transportation betwixt the 2 companies, highlighting helium exited Prime Trust 2 years prior.
“There is perfectly zero transportation betwixt Fortress Trust and Prime Trust,” Purcell wrote. “Quite the other arsenic astatine times we find ourselves competing with them. We are a precise antithetic company, from our exec squad to our exertion infrastructure.”
On Thursday, Bitgo announced that incorporating Prime Trust’s infrastructure and speech web volition fortify Bitgo’s offerings successful presumption of “custody, liquidity, settlement, and regulatory compliance.” Additionally, the Palo Alto-based steadfast volition get Prime Trust’s banking partners, crypto IRA, and existing outgo networks if the acquisition materializes. “The operation of Prime Trust and Bitgo would beryllium a important enhancement for the industry,” stated Jor Law, Prime Trust’s interim CEO and president connected Thursday.
What are your thoughts connected Bitgo’s planned acquisition of Prime Trust? Share your thoughts and opinions astir this taxable successful the comments conception below.
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