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Bitget Acquires Controlling Stake in BitKeep with $30 Million Investment | Titan Block

Written by Juliette Twain | Mar 22, 2023 2:52:16 PM

Bitget invests $30 million in crypto wallet provider BitKeep at a $300 million valuation to offer native storage and asset management services

Bitget, a leading cryptocurrency exchange, has announced its acquisition of a controlling stake in BitKeep, a rapidly growing crypto wallet provider. The $30 million investment comes at a valuation of $300 million and will enable Bitget to expand its business to the wallet sector, offering native storage and asset management services to its users.

Bitget's managing director, Gracy Chen, declined to comment on the specific stake percentage and previous investments in BitKeep. However, it has been confirmed that the controlling stake is above 51%. The acquisition is a strategic move for Bitget as it aims to strengthen its position in the cryptocurrency ecosystem.

BitKeep's recent growth has been nothing short of impressive. Monthly active users reached 1.6 million, and the total transaction volume crossed $4 billion. This rapid expansion is the primary reason for the significant jump in its valuation.

Despite the acquisition, BitKeep will continue to operate as an independent entity. The wallet provider has ambitious plans to add more features, including support for ZK-rollup-based Layer 2 networks, and aims to onboard the next 1 billion users to the crypto space.

As part of the deal, Kevin Como, BitKeep's pseudonymous CEO, will step down from his position. Karry Cheung, the current chief product officer of BitKeep, is set to be promoted to CEO, leading the company in its continued growth and expansion.

Bitget currently serves 8 million users, mainly from Asia, Latin America, and Europe, and has established itself as the largest web3 wallet in Asia with around 9.5 million users. The acquisition of BitKeep will not only allow Bitget to offer enhanced wallet services to its existing user base but also help attract new customers seeking a comprehensive crypto solution.

The collaboration between Bitget and BitKeep has the potential to create a more seamless and secure user experience for traders and investors. Integrating wallet services directly into the Bitget platform will enable users to manage their crypto assets more efficiently, with a single account for trading and storage.

The BitKeep acquisition also highlights the ongoing trend of consolidation within the cryptocurrency sector. As the industry matures, more prominent players are seeking strategic partnerships and acquisitions to broaden their service offerings and gain market share. Bitget's move to acquire BitKeep demonstrates the company's commitment to staying ahead in a rapidly evolving industry.

In conclusion, Bitget's acquisition of a controlling stake in BitKeep marks a significant milestone for both companies. The move allows Bitget to expand into the wallet sector and offer native storage and asset management services, while BitKeep continues its rapid growth and development under new leadership. As the cryptocurrency industry continues to mature, it will be exciting to watch how these two companies capitalize on their combined strengths to shape the future of digital asset management.