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Acquisition of BitGo Delayed by Galaxy Digital to Late 2022 -Breaking

by Mike Robinson

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Galaxy Digital to late 2022 Acquisition of BitGo
  • Galaxy Digital could not complete the BitGo acquisition.
  • Galaxy Digital’s CEO announced in an earnings call on Thursday that the firm has made changes to the original terms of its acquisition of BitGo.
  • Galaxy and BitGo have agreed to restructure the agreement.

Galaxy Digital, an investment company that specializes in cryptocurrency, could not complete the acquisition of BitGo, the digital asset custodian. The initial plan had been for BitGo to be acquired in the first quarter.

Galaxy Digital CEO Mike Novogratz stated in an earnings call that Galaxy Digital had made some changes to BitGo’s original terms.

BitGo’s CEO noted that the company has employed around 150 employees since May 2013, when the contract was signed. Novogratz stated:

For BitGo’s progress, we have made some adjustments to the agreement.

The executive went on to mention Galaxy’s commitment to “integrating BitGo and becoming an institutional crypto platform.” He also stated that both companies will proceed to work on the integration.

Galaxy and BitGo have changed the terms for the acquisition. Official reports state that one aspect of the deal was changed is that Galaxy Digital will be domesticated as a Delaware company immediately following its acquisition.

Domestication will take effect in Q2-2022. According to the firm, domestication is also subject to review by the United States Securities and Exchange Commission.

Galaxy will need to pay a large fee if the purchase is not completed by 2022. BitGo has already been charged a $100 million termination fee. These fees will have to be paid according to specific conditions.

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