FTI Consulting Finance and Cryptocurrency Experts Support Galaxy Digital’s $1.2B Acquisition of BitGo
Analysis of Digital Assets, Business Model and Infrastructure Alongside Traditional Due Diligence Supported Crypto Sector’s First $1B Transaction
Washington, D.C., May 18, 2021 — FTI Consulting, Inc. (NYSE: FCN) today announced it served as the cryptocurrency and technical advisor as well as the financial due diligence advisor for Galaxy Digital Holdings Ltd. (TSX: GLXY), a financial services and investment management innovator in the digital asset, cryptocurrency and blockchain technology sectors, in its upcoming purchase of BitGo, a leading independent digital assets infrastructure provider.
In addition to due diligence conducted by FTI Consulting’s Corporate Finance & Restructuring segment, experts within the firm’s Technology segment provided Galaxy Digital with a detailed and verified technical audit of the cryptocurrency assets under BitGo’s custody, as well as BitGo’s technology roadmap, infrastructure, business models and privacy and security practices.
“Cryptocurrency is still a new and highly competitive frontier, and with this deal, Galaxy Digital has taken a significant step in strengthening its position as a world-class, full-service platform for institutions to easily access the cryptocurrency economy,” said Steven S. McNew, a Senior Managing Director and Head of the Blockchain and Cryptocurrency practice within FTI Consulting’s Technology segment. “M&A in the cryptocurrency space is picking up quickly, and we expect the industry will continue as a significant area of interest for investors and dealmakers this year.”
Many companies involved with cryptocurrency also operate under innovative and non-traditional business models. From an M&A perspective, this adds complexities to the due diligence process. Verifying assets under custody is particularly challenging, as the process for doing so is different from standard approaches for validating individual ownership of digital wallets. FTI Technology developed a process in partnership with Galaxy Digital that enabled the firm’s experts to independently assess and verify BitGo’s assets under custody without any disruption to end customers.
“The acquisition of BitGo furthers Galaxy Digital’s position as a leading global full-service platform for institutions seeking access to the crypto economy and will enable us to offer an unparalleled breadth of industry-leading products and services at scale. Moreover, we will be uniquely positioned to serve the entirety of clients’ digital asset financial services needs and bring a new range of offerings to the market,” said Chris Ferraro, Co-President and Chief Investment Officer at Galaxy Digital. “In the due diligence process of this acquisition, FTI Consulting’s support was integral to help us understand the nuances and true value of what our company was buying. FTI Consulting ultimately helped us make faster, more informed decisions.”
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