Galaxy Digital abandons $1.2B purchase of crypto custody firm BitGo

Galaxy Digital abandons $1.2B purchase of crypto custody firm BitGo

Galaxy Digital, a cryptocurrency-focused financial services company, has reportedly given up on its intention to acquire BitGo, claiming the crypto custody expert failed to provide a financial statement for the year 2021. The planned acquisition represented the first $1 billion transaction in the worldwide crypto market.

Mike Novogratz, Galaxy’s CEO and founder stated that the company is still well-positioned for success and to seize strategic possibilities for long-term growth. The firm is dedicated to pursuing its US listing process and giving its customers a top-notch service that makes Galaxy a one-stop shop for institutions, he continued.

Galaxy Digital stated that it aims to carry out the suggested domestication and reorganization to become a Delaware-based corporation and, following completion of the SEC’s assessment and subject to stock exchange approval of such listing, to list on the Nasdaq.

As per a statement made earlier this month, Galaxy is still committed to generating long-term success for investors and achieving its corporate goals. This includes the expected Galaxy One Prime launch.

Amid the crypto catastrophe worldwide, Galaxy Digital recorded a loss of $554.7 million in the first half, up from a loss of $183 million in the same quarter last year.

The multi-signature bitcoin wallet service provided by BitGo distributes keys across a number of owners in order to reduce risk. There is no termination cost associated with the decision.

As Galaxy Digital awaiting the U.S. Securities and Exchange Commission's approval of its intention to restructure as a Delaware-based firm, the acquisition came to a standstill in March.

It is imperative to note that the parameters were changed at that time to provide BitGo's investors with bigger ownership in the amalgamated business and account for a drop in the price of Galaxy's Toronto-traded shares over the interim period. Since then, the stock of Galaxy has dropped another 60%.

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Rashi Thakkar

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for AlpenHornNews and various other websites, covering an array of sectors from finance and business to technology and healthcare.