The rumored deal between the online payment processing giant PayPal and the cryptocurrency custodian BitGo will not occur. Instead, both companies will reportedly focus on separate new ventures.
PayPal And BitGo Deal Won’t See The Light Of Day
The online payment processor co-founded by Elon Musk started showing sympathy for the cryptocurrency industry earlier this year. PayPal enabled its users to buy, sell, and store digital assets with fiat currencies.
Furthermore, reports emerged that the company was planning to purchase firms within the cryptocurrency field, including the California-based custodian BitGo.
However, BitGo’s CEO, Mike Belshe, said in a recent interview with Fortune that the deal will not happen.
Belshe failed to confirm if the rumors were actually true but said that the company he runs has been “in talks with everyone” over the years. However, as BitGo has grown substantially in the seven years it has been operating, he said that it wouldn’t accept a “small exit.”
People familiar with the matter have reportedly noted that the talks between the two organizations had fallen through. Consequently, PayPal had decided to look elsewhere for other potential acquisitions.
On the other hand, Belshe said that his company has no plans to raise capital in the near future. Although BitGo is not currently profitable because it is in a “growth mode,” it has a “very healthy balance sheet.”
BitGo Enjoys The Crypto Bull Run
Belshe explained that BitGo, alongside other cryptocurrency-related companies, has benefited from the late 2020 bull run that resulted in bitcoin breaking above $20,000 and marching to a new all-time high of $24,300.
BitGo’s assets under management have grown to $16 billion worth of various cryptocurrencies, and the company adds “several significant clients every week,” Belshe said.
However, he outlined that the industry could face security challenges as large corporations and institutions enhance their BTC adoption levels.
As CryptoPotato reported before, BitGo has launched several new initiatives in the past year alone. The organization introduced instant BTC trading to its institutional clients in early 2022 and expanded its cryptocurrency services to Europe shortly after.
More recently, BitGo acquired the crypto-native financial platform Lumina to provide its clients numerous new services, including a dashboard for managing, tracking, and accounting all holdings.