Celsius Network finds some respite after Galaxy Digital acquires GK8
- Galaxy Digital bought GK8 from bankrupt Celsuis Network
- Galaxy to expand its company in Tel Aviv after acquisition
In a relief to Celsius creditors, New York-based crypto investment firm Galaxy Digital made a successful bid to acquire GK8 from the bankrupt crypto lender. This includes all assets, liabilities, and contracts of GK8, a self-custody that helps both traditional and crypto-native clients manage their digital assets.
Galaxy Digital acquires GK8 from Celsius
The news was confirmed by the official Twitter account of the Celsius Network. There were weeks of uncertainty regarding the fate of the firm and its assets. This was because the bankrupt crypto lender was on the lookout for a potential buyer.
Today, @GalaxyHQ, a financial services and investment management innovator in the digital asset, cryptocurrency, and blockchain technology sectors, confirmed their intention to acquire substantially all of the assets, liabilities, and contracts of GK8.
— Celsius (@CelsiusNetwork) December 2, 2022
Celsius also clarified that proceeds of the sale will go to the company’s estate for the benefit of all stakeholders. While the terms of the deal were not disclosed initially, the Celsius Official Committee of Unsecured Creditors revealed earlier that GK8 bought it at a price close to $44 million.
However, this price stood well below what Celsius paid for GK8 back in November 2021, who paid a whopping $115 million to acquire the Israel-based cybersecurity company.
This evening the GK8 sale agreement was filed. The headline purchase price is $44 mm less certain deductions. You can find it here. https://t.co/bPfkT8Y3F1
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) December 3, 2022
Galaxy Digital was in the news earlier this year after it abandoned a $1.4 billion deal to acquire BitGo, a digital asset exchange based out of Palo Alto. The fallout led to BitGo filing a $100 million lawsuit against Galaxy to seek damages.
The deal will help set up GalaxyOne
According to a press release by Galaxy Digital, the acquisition was subject to regulatory and court approvals along with other closing conditions. The investment firm will increase its headcount by 40. Furthermore, it is expected to expand its global reach by opening a new office in Tel Aviv.
Mike Novogratz, the founder and CEO of Galaxy, said,
“The acquisition of GK8 is a crucial cornerstone in our effort to create a truly full-service financial platform for digital assets, ensuring our clients will have the option to store their digital assets at or separate from Galaxy without compromising versatility and functionality.”