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In October, rumors swirled that PayPal was set to acquire BitGo, one of the country’s oldest cryptocurrency companies. This deal will not happen, according to multiple sources, and BitGo is now charting a new path.
In a recent interview with FortuneBitGo CEO Mike Belshe noted that his company now holds more than $ 16 billion in cryptocurrency assets for its customers and acquires several large customers every week.
Although BitGo has been around since 2013, it has a lower profile than companies like Coinbase and Kraken, which offer exchanges that allow anyone to buy and sell Bitcoin and other cryptocurrencies. BitGo basic offer Rather, it is a custodial service that securely stores crypto on behalf of institutions and other high net worth clients.
Over the past year, BitGo has actively sought to redefine itself as full service crypto shop which offers other tax and loan services, as well as a way for clients to quietly arrange large trades.
Belshe notes that BitGo is one of many companies that have benefited from the current Bitcoin bull market. But he says the crypto industry faces challenges in building infrastructure – including security – as big companies like PayPal and Square move into the field.
Belshe adds that the largest crypto depositories, which also include Fidelity and Coinbase, will play a key role in ensuring that crypto continues to gain a foothold in mainstream finance.
As for PayPal rumors, Belshe did not confirm them, but said BitGo had been “in talks with everyone” over the years and the private company would not agree to a “small release”.
PayPal declined to comment on the acquisition negotiations. But a person close to the payments giant confirmed that BitGo talks had failed, adding that PayPal was exploring other potential acquisitions.
BitGo is currently unprofitable, Belshe said, as it is in “growth mode” but has a “very healthy balance sheet” and has no plans to raise capital in the near future.
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