Galaxy Digital Holdings has won the bidding to buy GK8, an institutional digital asset self-custody platform owned by Celsius Network.
According to a blog post from GK8 and a press release from Galaxy, if the acquisition goes ahead, Galaxy will acquire the platform’s nearly 40-strong team as part of the deal including cryptographers and blockchain engineers and an office in Tel Aviv.
The team behind the platform claims it can run secure blockchain transactions without being connected to the internet, severely reducing the risks of hacks. Celsius acquired GK8 in 2021 for $115 million, though Galaxy has not disclosed how much it offered during the bidding process.
Galaxy intends to support GK8’s ongoing operations while utilizing its technology to develop its trading platform GalaxyOne. GK8 founders, including CEO Lior Lamesh and CTO Shahar Shamai, are expected to stay with the company and lead Galaxy’s new custodial business.
Celsius has been undergoing bankruptcy proceedings since filing for Chapter 11 bankruptcy protection on Jul. 13, discussing plans to sell some of its assets. In the court filing, Celsius CEO Alex Mashinsky indicated the company could sell Bitcoin mined by its mining operation to help repay at least one of its loans and provide revenue for the company in the future.
