Galaxy Digital Exits BitGo Deal With No Termination Fees
The Tokenist | Aug 16, 2022 01:12AM ET
Galaxy Digital (TSX:GLXY) terminated its $1.2 billion acquisition of BitGo after the crypto custody provider failed to deliver audited financial statements ahead of schedule.
Digital asset and blockchain firm Galaxy Digital Holdings crypto custodial services provider BitGo after it failed to “deliver, by July 31, 2022, audited financial statements for 2021” that were required in the agreement. Under the terms of the deal, Galaxy is not obliged to pay termination fees.
“Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner. We are committed to continuing our process to list in the U.S. and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions.”
– Mike Novogratz, CEO, and Founder of Galaxy Digital.
The move comes just months after the two companies announced the deal. The acquisition would have turned the FINRA-approved Galaxy Digital into a full-service platform offering a broad range of services and products to institutional investors.
h2 Key Benefits of the Now-Terminated Deal/h2If the deal would have gone through, the acquisition of BitGo would bring numerous fresh additions to Galaxy’s existing business lines including a regulated client custody service offered by BitGo Trust Companies. It would have also reinforced Galaxy Digital with more than 400 global new clients.
Moreover, the acquisition would have also boosted Galaxy’s innovation and development capabilities through the addition of more than 50 engineers, as well as key product and infrastructure security staff. The deal was valued at $1.2 billion at the time.
“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology.”
– Novogratz said upon the announcement of the deal.
Based in Palo Alto, California, BitGo is a digital asset trust and security company providing crypto custody, trading, prime lending, and tax management services. The company currently manages more than $40 billion in assets and collaborates with more than 150 exchanges and 400 institutional clients.
BitGo security tokens .
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