Cryptocurrency exchange Bitget has acquired a controlling stake in BitKeep, a cryptocurrency wallet provider, with an additional $30 million investment at a $300 million valuation.

What Happened: According to a statement from Bitget, the acquisition is an important move that will allow the company to expand its business territory to the wallet sector, providing native storage and asset management services, The Block reported.

The controlling stake is well above 51%, but the specific stake percentage and how much Bitget has previously invested in BitKeep remain undisclosed.

Bitget's Managing Director Gracy Chen noted the company invested in BitKeep in 2021 and 2022 without making the information public.

The acquisition of a controlling stake in BitKeep came amid recent cryptocurrency and bank collapse, leading to a surge in demand for non-custodial wallets.

Chen believed the demand for non-custodial wallets will continue to grow, and that's why Bitget made a deal with BitKeep. 

Chen stated the acquisition of BitKeep is also part of the company's new "go beyond derivatives" strategy to offer DeFi and other services.

Also Read: GMX Token Price Skyrockets 89% In 2023 — Here's Why

Why It Matters: Bitget, founded in 2018 as a futures trading platform, currently serves 8 million users mainly from Asia, Latin America and Europe.

On the other hand, BitKeep claims to be the largest Web3 wallet in Asia with around 9.5 million users, and its monthly active users have jumped to 1.6 million, while its total transaction volume to date has crossed $4 billion, according to Moka Han, COO of BitKeep.

BitKeep's rapid growth in recent months is the main reason for a significant increase in its valuation, according to Han. The wallet provider was valued at $100 million in May last year when it raised $15 million in Series A funding.

Read Next: 'The Only Guarantee In Crypto Is Risk' Is What Belgium Wants Firms To Add In Their Advertisements