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PayPal Drops Rumored BitGo Deal

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Thu, 12/24/2020 - 06:27
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Alex Dovbnya
BitGo is not profitable in spite of Bitcoin’s bull run
PayPal Drops Rumored BitGo Deal
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PayPal’s rumored deal with BitGo is not happening, according to a recent Fortune article that refers to several anonymous sources.    

The payments giant — whose market cap is currently sitting at $280 billion — will now pursue other acquisition targets instead. It declined to comment on the failed deal.  

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Both parties remain mum about the deal   

Right after PayPal officially announced its cryptocurrency service, Bloomberg reported that the payments giant was in talks to acquire BitGo, a digital trust company that was founded in a distant 2013. The news was inevitably picked up by plenty of media outlets.             

At that point, the deal wasn’t finalized, and it now appears that the negotiations have fallen apart. 

In an interview with Fortune, BitGo CEO Mike Belshe didn’t confirm that the acquisition was on the table, but he did mention that they are having plenty of such conversations with other companies. 

He also mentioned that his company wouldn’t be content with a “small exit.”

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A path to profitability

BitGo currently manages more than $16 billion worth of cryptocurrencies. 

While Belshe notes that the company has benefited from the ongoing Bitcoin bull run, it is failing to turn a profit. It is currently focused on growth rather than profitability.   

Since its inception, BitGo has had five funding round, raising a total of $69.5 million. Its investors include Barry Silbert’s Digital Currency Group (DCC) and Mike Novogratz’s Galaxy Digital. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.