After the rumors in the past months that PayPal was going to acquire BitGo, the payment firm is stated to have finally dropped its plans to acquire the crypto firm. Now both firms are going into separate ways.
Earlier this year, PayPal enabled the buying, selling, and storing of digital assets and fiat currencies on its platform. It sustained rumors that it was interested in taking over a crypto firm, with BitGo being the favorite.
BitGo CEO revealed that the deal is never going to happen.
The CEO mentioned that the company has been talking to many firms this year. He also noted that BitGo was not allowing a ‘small exit.’
Sources also stated that the talks between PayPal and BitGo were not progressive. The payment firm is even noted to have lengthened its search for a firm it can acquire potentially.
Belshe also mentioned that the crypto firm is not profitable at the moment for it is still developing. But he says that the firm balance sheet is healthy. He adds that they don’t plan to raise any capital soon.
The crypto firm is no doubt one of the earliest crypto firms in the US after launching its operations in 2013. But it has been overshadowed by other crypto giants like Coinbase and Kraken.
Coinbase and Kraken offer a platform for anyone to buy or sell digital assets, on the other hand, BitGo’s principal offering is a custody service for institutions and other rich clients. BitGo stores crypto on behalf of its clients very securely.
The firm tried redefining its position in the industry while offering other tax and lending services and being a platform for users to engage secretly on larger scales.
But the CEO noted that with the entrance of PayPal, Square is now bullying them into the crypto space as he acknowledges that their firm benefited from the recent Bitcoin bull market.
PayPal’s Next Move
After a downfall in negotiation between PayPal and Bitgo, the payment firm didn’t shed light on the issue.
There are no statements, tweets, or any update with regards to the acquisition from their part yet. But sources state that PayPal is exploring other probable acquisitions.