The global crypto industry’s first $1 billion deal has not seen the light of day. Digital asset and blockchain leader Galaxy Digital announced on 15 August that it terminated the $1.2 billion acquisition of digital asset trust company BitGo. Mike Novogratz’s crypto investment firm decided to drop the acquisition because it failed to provide audited financial statements for 2021.
Galaxy terminated the deal after BitGo failed to deliver audited financial statements for 2021 by 31 July 2022, as stipulated by the agreement. Galaxy stated that there is no fee to be paid in relation to the termination.
However, BitGo has disputed Galaxy Digital’s claim. BitGo argues that the deal was not set to expire until 31 December “at the earliest,” and that Galaxy Digital has failed to pay the $100 million reverse break fee it “promised back in March 2022 in order to induce BitGo to extend the merger agreement.”
Galaxy initially announced plans to acquire BitGo in May 2021 as part of its US IPO plans. Despite multiple delays, Galaxy was expected to complete the acquisition by the end of 2022.
What does this mean for its US listings plan?
The BitGo acquisition was intended to assist Galaxy Digital in expanding its offerings to institutional investors by adding services such as investment banking, prime lending, and tax services.
Despite the deal falling apart, Galaxy is continuing to pursue its plans to list in the United States. It is doing this by reorganizing its operations to become a Delaware-based company. Galaxy also will be introducing new products such as Galaxy One Prime—a product aimed at institutional investors.
FAQs
Does Galaxy Digital own BitGo?
Galaxy Digital Holdings Ltd. had announced its intention to acquire BitGo, a prominent cryptocurrency custodian and service provider. However, I recommend checking the latest news and official announcements for the most current information, as ownership and corporate structures can change over time.
If the acquisition was completed, it’s likely that there would have been official statements or press releases from both Galaxy Digital and BitGo confirming the details of the acquisition, including the terms and conditions. Check the official websites of Galaxy Digital and BitGo, as well as reputable financial news sources, for the latest information on any potential acquisition or changes in ownership.
Who bought out BitGo?
Galaxy Digital Holdings Ltd. had announced its intention to acquire BitGo, but the completion of the acquisition had not been finalized at that time. To get the latest and most accurate information on the ownership and any changes related to BitGo, I recommend checking the official websites of both Galaxy Digital and BitGo, as well as reputable financial news sources.
Who is the owner of Galaxy Digital?
Galaxy Digital Holdings Ltd. was founded and is led by Michael Novogratz. Michael Novogratz is a former hedge fund manager and Goldman Sachs partner who entered the cryptocurrency space. He is the CEO and Chairman of Galaxy Digital Holdings, a diversified financial services and investment management company focused on digital assets and blockchain technology.
What is the valuation of BitGo?
On August 16, 2023, BitGo raised $100 million in Series C funding at a $1.75 billion valuation.
