Galaxy Digital wins bid for insolvent crypto lender Celsius' self-custody platform

Galaxy Digital Holdings ( OTCPK:BRPHF ), the cryptocurrency financial services firm founded by Mike Novogratz, said Friday it won an auction to buy digital asset self-custody platform GK8 from Celsius Network, the crypto lender that filed for Chapter 11 bankruptcy in July. The deal, of which terms were not disclosed, enables Galaxy ( OTCPK:BRPHF ) to use GK8's custody solution in connection with its ongoing development of GalaxyOne, a prime brokerage offering, it said. Also, a team of almost 40 people, comprised of cryptographers and blockchain engineers, would be joining Galaxy, and the deal would also expand its global reach with the addition of an office in Tel Aviv, Israel. "Adding GK8 to our prime offering at this pivotal moment for our industry also highlights our continued willingness to take advantage of strategic opportunities to grow Galaxy in a sustainable manner," Galaxy CEO Novogratz said. The move comes shortly after Galaxy ( OTCPK:BRPHF ) disclosed direct exposure of nearly $77M of cash and digital assets to the now-bankrupt crypto exchange FTX. On top of that, Galaxy had another tough quarter in Q3, posting a net comprehensive loss of $68.1M vs. income of $517.9M a year before, mostly due to unrealized losses on investments in its Principal Investments business. BRPHF stock slid 4% in Friday afternoon trading. Previously, (Nov. 10) Novogratz said FTX news is a "body blow" to crypto industry trust .