Bitgo Holdings, Inc. · NYSE:BTGO
Bitgo — Merger or Acquisition (May 2021)
17 slides from Bitgo's merger presentation, May 5, 2021
Slide 1: Galaxy Digital to Acquire BitGo
May 5, 2021 Galaxy Digital to Acquire BitGo Establishing a One - Stop Digital Asset Provider for Institutions
Slide 2: Disclaimer
The information (Information) contained herein may not be reproduced or redistributed in whole or in part, in any format, without the express written approval of Galaxy Digital Holdings Ltd . ’s (“Galaxy Digital” or the “Company”) . You should make your own investigations and evaluations of the Info
Slide 3: Forward-looking statements
There can be no assurance that future developments affecting us will be those that we have anticipated . These forward - looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be material
Slide 4: Presenters
Mike Novogratz Founder, CEO, & Chairman Galaxy Digital Chris Ferraro Co - President & Chief Investment Officer Galaxy Digital Damien Vanderwilt Co - President & Head of Global Markets Galaxy Digital Mike Belshe Co - Founder & CEO BitGo Presenters 3
Slide 5: Our Mission: Institutionalize digital asset ecosystems and blockchain technology
Our Mission: Institutionalize digital asset ecosystems and blockchain technology 4
Slide 6: Pioneer in Crypto Financial Services
150+ Employees Globally ~$1.3B In AUM (1) $10B Market Capitalization (2) 300+ Institutional Trading Counterparties Market - Maker in 60+ Different Cryptocurrencies ~80 Venture Investments Across 60 Portfolio Companies (3) Trusted by Partners Asset Management Trading Mining Investment Banking Princip
Slide 7: The Digital Asset Industry is Enjoying Strong Secular Tailwinds
The Digital Asset Industry is Enjoying Strong Secular Tailwinds… Market Accelerators Key Trends 2020 total investment in c rypto & blockchain tech (2) $ 5.6B Total i nvestment in cryptocurrency startups to date (1) ~ $ 18.9 B + 34 % 5 - Year Bitcoin and b lockchain investment CAGR (1) x Institutiona
Slide 8: Significant Serviceable TAM, Attractive Upside
Significant Serviceable TAM A ttractive Upside Increasing Institutional Demand (1) Tax Prep. Revenues $ 1 1B (7) Crypto Daily Market Volumes $170.8B (2) Equities $138T (1) US Investors with a Digital Assets allocation, Fidelity Digital Assets Survey (2020). (2) Reported Volume Market data as of May
Slide 9: Crypto economy still requires key institutional capabilities
To enable widespread adoption, the crypto economy still requires key institutional capabilities Custody Custody solutions are expected to meet vendor compliance standards required by institutions Liquidity Lack of scaled market makers and deep liquidity pools Insurance Digital assets lack traditiona
Slide 10: Galaxy and BitGo Together Address the Market's Demands
x Industry - leading custody solution x P ath to scaled prime brokerage x International beachhead position x Adds portfolio management and tax services x Innovative, world - class technologists specializing in blockchain infrastructure Custody Portfolio & Tax Asset Management Investment Banking Trad
Slide 11: Adding the Leading Independent Crypto Infrastructure Provider
Adding the Leading Independent Crypto Infrastructure Provider ~50% Of Total TTM ’21 Revenue is Non - U.S. (3) 50+ Countries Served (2) $30B+ In Monthly Transactions (1) $40B+ In Assets Under Custody (1) $700M In Insurance for Digital Assets Provided 400+ Tokens and Coins Supported 400+ Institutional
Slide 12: BitGo's Capabilities
Custody x Wallet Platform x Qualified Custody x Self - Managed Custody BitGo’s Capabilities, Powered by BitGo’s Best - in - Class Core Blockchain Infrastructure Prime Brokerage x Insured Cold Storage x Settlement Services x Plug - and - Play Trading x Fully Collateralized Loans x Customized Reportin
Slide 13: BitGo Offers Industry-Leading Compliance and Security
Strong History of Compliance x Deliver standards, such as CryptoCurrency Security Standard (CCSS) and passed SOC1 and SOC2 Type 2 audits for its hot wallet platform x Regularly audited on rigorous standards for capitalization, anti - money laundering procedures, confidentiality, reporting, and stora
Slide 14: Differentiated One-Stop Shop for Crypto Infrastructure
Insured, Qualified Custodian Independent Custodian Portfolio and Tax Solution Multi - Venue Trading Stablecoin Operator Multiple Coin Support Silicon Valley Wall Street x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Differentiated One
Slide 15: Strategic rationale of the acquisition
• Adds ~50 engineers , key R&D and blockchain infrastructure and a west coast tech - centric presence • Enhances Galaxy’s ability to meet evolving market demands with leading go - to - market speed and scaled offerings • Approximately 75% of BitGo’s revenue is reoccurring (2) • BitGo’s core minimum
Slide 16: Power of the Galaxy Digital + BitGo Combination
Together, Galaxy and BitGo will set the standard for serving institutions in the digital asset ecosystem Leading digital assets infrastructure provider Custody, Prime Brokerage, and Portfolio/Tax Strong Focus on Product and Security Innovation Majority of Revenue from Customers Outside of the United
Slide 17: Transaction terms
Consideration • Galaxy Digital to acquire 100% of outstanding share capital of BitGo • Consideration to consist of 33.8 million shares of Galaxy Digital common stock and $265 million in cash subject to certain adjustments • Implies a transaction value of ~$1.2 billion based on Galaxy Digital’s closi