BitGo Scores $43 Million as Crypto Goes Corporate

BitGo, the maker of multi-signature cryptocurrency wallets for enterprises, has closed a $42.5 million Series B funding round in a sign that demand has at last arrived for institutional-grade services in the market.

Led by Valor Equity Partners with participation from Bill Lee and David Sacks, the round of venture capital brings BitGo’s total funding to more than $55 million, following a Series Ain June 2014.

As part of the investment, Antonio Gracias (who sits on the boards of SpaceX and Tesla) and Sacks (who co-founded PayPal and Yammer) will join BitGo’s board of directors. Strategic investor Don Wilson, the founder of asset trader DRW and a co-founder of blockchain startup Digital Asset, will also join BitGo as an advisor.

Announced today, the fundraising caps a transitional year for the veteran bitcoin startup, which was founded to serve businesses back in 2013 – long before this year’s influx of institutional money helped drive the currency to record highs.

As a result of that market maturation, BitGo turned a profit for the first time this year. Based in Palo Alto, CA., the firm was building institutional products when most other startups in the space were focused on bringing bitcoin to the masses.

With clients such as CME Group, which is expected to launch a much-anticipated bitcoin futures product next week, BitGo now facilitates a total $8 billion-worth of bitcoin transactions per month, charging a fee on each one.

In an interview, BitGo co-founder and CEO Mike Belshe discussed the firm’s long path to achieving profitability and scoring one of the largest venture capital raises in the blockchain industry.

All this time, Belshe said:

“We’ve been behind the scenes plotting away, building a bigger, better system.”

Multi-coin support

When BitGo was founded, it focused on enabling businesses to securely use bitcoin with wallets that require multiple cryptographic signatures to access.

But over the years, the company has evolved to meet an institutional demand for both “hot” (online) and “cold” (offline) storage of six currencies, including bitcoin, ethereum, ripple and bitcoin cash…

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