Galaxy Digital, Mike Novogratz’s cryptocurrency firm, has agreed to buy Israeli cybersecurity company GK8 for $44 million
According to a recent court filing, Galaxy Digital, Mike Novogratz’s cryptocurrency firm, has purchased Celsius’s GK8 unit for $44 million, Bloomberg reports.
The failed cryptocurrency lending firm acquired the Israeli cybersecurity company, which helps institutions to safeguard their clients’ crypto, for $115 million. This means that Galaxy managed to buy the firm at a whopping 60% discount.
As per the acquisition agreement, the deal will add a 40-strong team as well as an office in Israel’s capital.
GK8 was founded by cybersecurity experts Shahar Shamai and Lior Lamesh. Prior to being acquired by Celsius, the firm raised $10 in funding.
Notably, both of them previously worked at the office of the Prime Minister of Israel.
Following the acquisition, Shamai and Lamesh will not spearhead Galaxy’s custodial technology unit.
The deal was initially announced last week. The acquisition is yet to be approved by the court.
As reported by U.Today, blockchain company Ripple also expressed interest in buying Celsius assets.
The low acquisition price reflects the dire state of the cryptocurrency industry amid the ongoing crypto winter. Banking giant Goldman Sachs reportedly plans to spend a substantial amount of funds on acquisitions.
Celsius was forced to file for bankruptcy back in July after suspending withdrawals. Alex Mashinsky stepped down as the company’s CEO in September.
In October, the Financial Times reported that Celsius executives, including Mashinsky, withdrew millions of dollars from the platform before it went underwater.