After more than a year of efforts to acquire digital asset custodian BitGo, Mike Novogratz’s cryptocurrency investment firm Galaxy Digital has decided to abandon the acquisition.
Galaxy has terminated the acquisition of BitGo, citing a breach of contract, the firm officially announced on Monday.
According to the release, Galaxy exercised its right to terminate the deal in accordance with the acquisition agreement after BitGo failed to deliver audited financial statements for 2021 by July 31, 2022. Galaxy noted that no termination fee is paid on relation to termination.
As previously reported, Galaxy originally announced plans to acquire BitGo in May 2021 as part of its plans to go public in the United States. Following multiple delays in the acquisition, Galaxy was expected to finalize the transaction by the end of 2022. In April, Galaxy said it would take a $100 million fee should it fail to acquire BitGo under “certain circumstances” by December 31. . 2022.
Despite the liquidation of the BitGo acquisition, Galaxy is still continuing its path to the US listing on Nasdaq, CEO Novogratz said, stating:
“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 United States.”
As part of the US listing plans, Galaxy is working to reorganize its operations to become a Delaware-based company. The company previously expected the Delaware taming to take effect between the second and fourth quarters of 2022, subject to a review process with the US Securities and Exchange Commission.
Related: Argo Blockchain Keeps Collecting BTC to Pay Debt to Galaxy Digital
Galaxy is also staying focused on launching new products, including its next offering, the Galaxy One Prime. Aimed at institutional investors, Galaxy One Prime provides services such as trading, lending, and derivatives along with access to qualified custody that integrates “qualified blue chip custodians.”
