Friday, August 12, 2022

PayPal drops rumored deal with the crypto firm BitGo.

The Takeaway:

PayPal was rumored to acquire BitGo, one of the country's oldest cryptocurrency firms, but now the payment giant has confirmed that no such deal will happen.

In October, it was reported that PayPal was poised to acquire BitGo, one of the country’s oldest cryptocurrency firms. According to the fortune report, that deal will not happen, and BitGo is now charting a new path. According to the report, BitGo CEO Mike Belshe noted that his company now holds over $16 billion worth of cryptocurrency assets for its customers and that it’s acquiring several significant clients every week. 


BitGo seeks to redefine itself as a full-service crypto shop. 

In the past year, crypto firm BitGo has aggressively sought to redefine itself as a full-service crypto shop that offers other tax and lending services, as well as a means for clients to arrange large trades discreetly. BitGo CEO noted that the crypto firm is among many companies that have benefited from the current Bitcoin bull market. But he says the crypto industry faces challenges in building infrastructure—including security—as large companies like payment giant PayPal and Square move into the field. Bitcoin reached new all-time highs this month after almost three years. 


“Big crypto firms will play a key role to help reach bitcoin mainstream.” 

BitGo CEO, in the interview with fortune, said that the biggest crypto custodians, including Fidelity and Coinbase, will play a key role in ensuring crypto continues to gain a foothold in mainstream finance. The CEO did not confirm the PayPal rumors, but he said BitGo has been “in talks with everyone” over the years and that the privately held company won’t accept a “small exit.” According to the CEO, BitGo is not currently profitable, as it is in “growth mode,” but that the crypto firm has a “very healthy balance sheet” and has no plans to raise capital in the near future.

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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