Galaxy Digital to buy BitGo in crypto sector’s first $1 billion deal

Bitcoin-focused firm Galaxy Digital Holdings Ltd. has agreed to buy BitGo Inc. for $1.2 billion in cash and stock, the first $1 billion deal in the cryptocurrency industry.

The deal coincides with a surge in interest and a nearly yearlong rally in the crypto sector whose market value has surged to $2 trillion.

The acquisition will make Galaxy Digital a crypto-focused financial-services firm with more than $40 billion in assets under custody. The combined company will offer an array of products and services, including trading, custody and asset management, investment banking, prime lending, tax services and even a mining operation, aimed mainly at institutional investors.