Galaxy Digital Terminates $1.2 Billion Acquisition of BitGo

Published on: 16 August 2022
by KnowESG
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Galaxy Digital, a financial services and investment management firm, announced that it terminated a $1.2 billion acquisition of digital asset trust company BitGo because it had failed to deliver audited financial statements for the financial year 2021.

The proposed acquisition was the first transaction in the global cryptocurrency industry that was worth $1 billion.

Mike Novogratz, CEO and Founder of Galaxy, said:

"Galaxy remains positioned for success and to take advantage of strategic opportunities to grow sustainably.

"We are committed to continuing our process to list in the US and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions."

In connection with the decision, there will be no payment required for termination.

Galaxy Digital stated that it plans to complete the proposed reorganisation and domestication to become a Delaware-based company and then list on the Nasdaq, subject to the SEC's review and stock exchange approval of such listing.

"Galaxy remains focused on executing its business objectives and driving long-term performance for investors. That includes the planned rollout of Galaxy One Prime," it said.

Amid the global crypto catastrophe, Galaxy Digital recorded a loss of $554.7 million in the second quarter, up from a loss of $183 million the previous year.

BitGo provides a multi-signature bitcoin wallet service in which keys are divided among multiple owners to manage risk.

Source: Business Insider

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