Investment firm Galaxy Digital Holdings has successfully bid to buy GK8 which is a self-custody platform owned by Celsius Network. The galaxy will acquire the platform’s nearly 40-strong team as part of the deal if the acquisition goes ahead. GK8 manages blockchain-based assets and offers self-custody, DeFi, staking, NFT support, trading, and tokenization.
The platform can run secure blockchain transactions without being connected to the internet. This significantly reduces the risks of hacks and exploitation. In 2021, GK8 was acquired by Celsius for $115 million. Mike Novogratz, the founder, and CEO of Galaxy described the acquisition as a crucial cornerstone in an effort to create a truly full-service financial platform for digital assets. He said it shows the company’s continued willingness to take advantage of strategic opportunities to grow Galaxy in a sustainable manner.
Novogratz said Galaxy will support GK8’s ongoing operations while utilizing its technology to develop its trading platform GalaxyOne. Moreover, GK8’s founders as well as its CEO Lior Lamesh and CTO Shahar Shamai are expected to stay with the company and lead Galaxy’s new custodial business. Lamesh said they are working towards introducing new and exciting offerings to the industry that showcase a combination of Galaxy’s best-in-class services and GK8’s cryptography, security, and unparalleled R&D skills.
Furthermore, Celsius has been undergoing bankruptcy proceedings since filing for Chapter 11 bankruptcy protection on July 13. Alex Mashinsky, Celsius CEO, had said the company could sell Bitcoin mined by its mining operation to help repay at least one of its loans and provide revenue for the company in the future. In its September 15 filing, Celsius asked for permission to sell its stablecoin holdings.