BitFury, is a multifaceted Bitcoin company that specializes in bitcoin infrastructure development, payment processing, ASIC development and large scale mining. Today they have announced a partnership with BitGo, a leader in multi-signature wallet technology and general Bitcoin security.
This might not be the sexiest news to come across my desk, but in the long term, it has potential to have a significant impact. Security is clearly an issue for the Bitcoin industry and BitFury seems to be taking a serious interest in not only improving its own security, but making profiting from providing security to others.
The partnership includes a significant investment into BitGo for a currently undisclosed amount. BitGo will handle BitFury's Treasury needs. BitGo specializes in handling large amounts of Bitcoin for corporations in multisignature wallets.
When making the announcement, BitFury CEO Valery Vavilov explained the move:
“As our business has been scaling rapidly, we were looking for efficient and secure bitcoin corporate treasury solutions that would satisfy our operational needs and meet our corporate governance and reporting standards [. . .] We look forward to implementing this class of tools across our operations as we continue to scale up our business.”
BitGo recently received over $12 million in funding and has received over $14 million in funding during its existence prior to this investment by BitFury. Co-founder Will O’Brien stated “This partnership with BitFury Group has the potential to grow and establish new standards for the industry.” BitGo provides wallets intended to have the usability of hosted wallets and the security of cold storage.
There have been a few high-profile hacks in the cryptocurrency space lately, although most of them have been focused on altcoins. That said, Bitcoin isn't that far removed from the theft that undoubtedly set it back significantly and got the digital currency into the headlines for all the wrong reasons. So it should come as no surprise the BitFury not only sees the need to further secure its own holdings while also seeing security as having potential for investment.
We will have more as details become available.
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