According to people familiar with the matter, the New York-based crypto company NYDIG has acquired the British payments startup Bottlepay.
NYDIG will pay for the company in shares, and the transaction is estimated to be worth between $280 and $300 million (equivalent to 3% of NYDIG’s shares). The transaction was completed earlier this week.
When contacted, a NYDIG spokesperson declined to comment.
Bottlepay, based in Newcastle upon Tyne, England, was founded in 2019 and facilitates instant payments in a variety of currencies, including bitcoin. The Lightning Network – a bitcoin-centric protocol aimed at facilitating faster payments – is used by the platform.
Bottlepay’s largest shareholder is British billionaire Alan Howard. In February 2021, he led a £11 million investment in Bottlepay with NYDIG and FinTech Collective, a venture capital firm. That round valued the company at £51 million.
Bottlepay was founded by Howard and Chris Tuohy, a director and investor in the company who was previously a “star trader” at Tudor Investment Corporation, the investment firm founded by billionaire hedge fund manager Paul Tudor Jones.
With a variety of custody and trading tools, NYDIG assists institutions in expanding into cryptocurrency. This year alone, the company has raised $300 million in two rounds from investors such as Morgan Stanley, New York Life, and Soros Fund Management. Morgan Stanley, JPMorgan, and Wells Fargo have all partnered with the company to offer their own bitcoin investment products to clients.
NYDIG acquired Arctos Capital in April, a commercial lender that offers financial products to bitcoin holders, investors, and miners. It acquired Digital Assets Data, an analytics firm, earlier this year.
This year, Howard, the former CEO of the hedge fund Brevan Howard, has made a significant number of bets on crypto infrastructure startups. Copper and Komainu, two cryptocurrency custodians, as well as CoinShares, an asset manager, and Ledn, a cryptocurrency lender, are among his investments.