PayPal will not acquire crypto custodian BitGo, exploring other acquisitions: Report
PayPal’s rumored acquisition talks with crypto custodian BitGo have fallen through, Fortune reported Thursday, citing “multiple sources.”
In October, there were reports that BitGo could get acquired by PayPal, among other crypto companies. The payments giant is now reportedly exploring other potential buys.
Meanwhile, BitGo has been “in talks with everyone” over the years, and the company won’t accept a “small exit,” CEO Mike Belshe told Fortune.
Founded in 2013, BitGo isn’t profitable yet. The custodian is in “growth mode” and has a “very healthy balance sheet,” said Belshe. He added that the company has no plans to raise more funds in the near future. BitGo has raised a total of $69.5 million in external funding to date, according to Crunchbase.
The company currently holds more than $16 billion worth of crypto assets for clients, and is adding new customers every week, said Belshe.
PayPal currently closely works with crypto services firm Paxos. Paxos Crypto Brokerage powers PayPal’s crypto trading service. Users can buy bitcoin and other cryptocurrencies via PayPal digital wallet, powered by the brokerage house.
© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Yogita Khatri
