BitGo has acquired the institutional trading business of bitcoin-focused firm NYDIG for about $42.5 million in a two-step merger, comprising $7 million in cash and roughly $35.5 million in BitGo stock, according to a regulatory filing. Earnout provisions include a $10 million cash payment tied to one revenue milestone and up to $5 million more in cash plus additional shares tied to a second, alongside retention awards for transferred staff. The deal folds in about 30 NYDIG employees and institutional client relationships, expanding BitGo’s regulated custody, settlement and wallet franchise into derivatives, structured products, financing and capital-markets solutions for asset managers, hedge funds, corporates and family offices. CEO and co-founder Mike Belshe said institutions increasingly want a single trusted partner across the digital-asset lifecycle from custody and trading to financing and settlement. NYSE-listed BTGO, which IPO’d in 2026 at a valuation around $2 billion, has since faced a depressed crypto market, cut staff by about 15% in an AI-driven restructuring wave, and launched its USDS stablecoin. NYDIG CEO Tejas Shah said the trading unit is complementary to BitGo’s infrastructure as NYDIG concentrates on power generation, Bitcoin mining and HPC data-center development with a pipeline exceeding 3 gigawatts.