Cryptocurrency billionaire Mike Novogratz managed to buy a bankrupt loan platform at auction in July.
Mike Novogratz incorporated this cryptocurrency project
Galaxy Digital CEO, known for his support of Terra LUNA, announced in a press release on Friday that it has acquired GK8, a platform acquired by bankrupt Celsius. GK8 is a self-surveillance platform that Celsius acquired over a year ago. It was blocked after Celsius went bankrupt in July. Novogratz has now announced that his company has managed to purchase the GK8 at an auction. The sale was quite a small amount relative to the company’s previous price. “We are excited to welcome talented engineers,” Novogratz said on Twitter.
Meanwhile, there is no clear figure yet about the amount of the purchase. Galaxy spokesperson Michael Wursthorn says Celsius is far below the price it paid in 2021. The bankrupt loan platform bought GK8 for $115 million in November last year. Galaxy’s Founder and CEO, Mike Novogratz, said in his statements about the acquisition:
The acquisition of GK8 is a crucial cornerstone in our effort to build a truly full-service financial platform for cryptocurrencies, allowing our customers the option to store their coins on or separately from Galaxy without sacrificing versatility and functionality.
Why did Celsius go bankrupt?
In general, 2022 was a year of bankruptcies and collapses. What happened at the crypto lending platform Celsius stemmed from Terra, which wiped out nearly $1 trillion from the market and ruined thousands of investors. Celsius, like Terra, offered high passive returns (APY) to its customers. The company increased APY as much as 17% at one point. Celsius was initially able to make payments in full. After the events around Terra in May, the cryptocurrency market fell hard. Bitcoin and Ethereum returned half of their 2021 gains. In such conditions it greatly affected Celsius and caused its bankruptcy in July.
All the details of the Celsuis collapse cryptocoin.comWe quoted it in this article.
Galaxy Digital increases its penetration in the cryptocurrency market
As CEO Mike Novogratz put it, the company’s primary intent in acquiring GK8 is “a crucial cornerstone in our effort to build a truly full-service financial platform for cryptocurrencies.” The acquisition will also result in the opening of an office in Tel Aviv, expanding Galaxy’s position in the world. However, about 40 professionals from the GK8 team join Galaxy. GK8’s co-founders, CEO Lior Lamesh and CTO Shahar Shamai will continue to lead Galaxy’s work for new wallet technologies. CEO Lamesh noted the following about the deal:
We are excited about the possibility of GK8 joining one of the leading providers of financial and crypto services to institutions that truly understand the impact of custody technology on the future of Blockchain.
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