Mike Novogratz’s Galaxy Digital will not pursue its planned acquisition of crypto custody firm BitGo, it announced today.

Galaxy Digital Pulls Plug on $1.2 Billion BitGo Acquisition

Galaxy Digital, the crypto investment firm run by billionaire Mike Novogratz, today announced it would terminate its proposed deal with crypto custodian BitGo.

According to Galaxy, the firm has exercised its right to terminate the previously announced acquisition agreement “following BitGo's failure to deliver, by July 31, 2022, audited financial statements for 2021 that comply with the requirements of our agreement.”

The termination of the deal will not result in any fee, Galaxy said.

“Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner,” Galaxy CEO Mike Novogratz said in a statement. “We are committed to continuing our process to list in the U.S. and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions.”

Galaxy first disclosed its intention to acquire BitGo in a $1.2 billion deal in May last year. Were the deal to have successfully closed, it would have become one of the biggest in the crypto industry, bringing Galaxy about 400 new global clients and allowing the firm to expand geographically.

A year after its announcement, the deal had yet to close; by May 2022 Galaxy was claiming that it expected to finalize the acquisition by the end of the year.

In an SEC filing that month, Galaxy also said it would “issue incremental shares of its common stock to BitGo's shareholders in exchange for BitGo's net digital assets at close.” The firm thus implicitly confirmed media reports that the purchase price included BitGo's Bitcoin and Ethereum holdings, making the actual value of the custodian significantly less than the previously announced $1.2 billion.

Galaxy eyes public listing on the Nasdaq

Today’s news follows Galaxy’s Q2 earning report last week, which saw the firm report $554 million in unrealized losses on its crypto holdings.

Although the 2022 bear market has taken its toll, Galaxy also reported that by the end of June it held $1.5 billion in liquidity, mostly in cash.

In today’s announcement, the firm reiterated plans to reorganize as a Delaware-based company.

The move—providing Galaxy gets a regulatory nod—will enable the firm to go public on the Nasdaq exchange in addition to its existing listing on the Toronto stock exchange.

The firm also said it is working on the planned launch of Galaxy One Prime, a new product offering for institutional investors that will combine trading, lending, and derivatives services.

Stay on top of crypto news, get daily updates in your inbox.

NEWS RELATED

Today in Apple history: iPhone 4s opens for Siri-ous preorders

The iPhone 4s was the last iPhone that Steve Jobs directly worked on. Photo: Apple October 7, 2011: Two days after the death of Steve Jobs, Apple opens preorders for its next-gen iPhone 4s. The last iPhone that Jobs worked on directly, the 4s boasts a speedier A5 chip, ...

View more: Today in Apple history: iPhone 4s opens for Siri-ous preorders

North Sea oil and gas: what UK government previously said - as it opens new licensing round for exploration

The UK government has come under fire for opening for oil and gas exploration in the North Sea, despite warnings from environmental experts. Nearly 900 locations are being offered for exploration, with as many as 100 licences set to be awarded. This decision comes after international climate scientists said fossil ...

View more: North Sea oil and gas: what UK government previously said - as it opens new licensing round for exploration

Weather Forecast For 2022 Bank of America Chicago Marathon Looks Sunny, Breezy

In 2018, the average temperature on Chicago Marathon race day was 37 degrees

View more: Weather Forecast For 2022 Bank of America Chicago Marathon Looks Sunny, Breezy

Celeste Ng makes the case for art as a weapon against oppression in her new novel

Penguin Press Celeste Ng’s Our Missing Hearts is not exactly dystopian or alternate history, as many events described in her latest novel have in fact happened, or are thinly disguised versions of real-life tragedies. “The Crisis,” for example, is a worldwide economic breakdown allegedly caused by China’s market manipulation, ...

View more: Celeste Ng makes the case for art as a weapon against oppression in her new novel

Children’s pain medication to continue to be ‘intermittently available’: Health Canada

Health Canada said it’s working directly with manufacturers to rectify the ongoing shortage of children’s acetaminophen and ibuprofen products. But it warns that intermittent supply will continue to be an issue at retail locations for the time being. “Over the summer months, there was unprecedented demand for these products and ...

View more: Children’s pain medication to continue to be ‘intermittently available’: Health Canada

BC Ferries schedules 85 extra sailings for Thanksgiving weekend

It’s finally time for turkey and pumpkin pie but if you plan to travelling on a ferry this Thanksgiving weekend, you may want to give yourself some extra time. BC Ferries is expecting a sharp increase in passengers and has added 85 extra sailings for the long weekend. #BCFNewsWe're adding ...

View more: BC Ferries schedules 85 extra sailings for Thanksgiving weekend

Warzone 2 DMZ details and release date

The hotly anticipated Warzone 2 DMZ mode has been confirmed for Warzone 2.0, bringing sandbox, exfil gameplay to the game for the first time

View more: Warzone 2 DMZ details and release date

The best FIFA 23 free agents to sign in career mode

The best FIFA 23 free agents could be the difference to your club, especially in the early game as you manage your budget, so these are the ones worth signing

View more: The best FIFA 23 free agents to sign in career mode

Taylor Swift sounds off on ‘weird rumors’ about relationship with Joe Alwyn

Joel Fields & Joe Weisberg Promote Caroline Moore To President of The Js Production Company

Rab Havlin finally tastes Group 1 glory on Commissioning

WATCH: Broncos WR KJ Hamler Melts Down After Loss to Colts

Biggest wins at the World Cup: what is the highest scoring game at the FIFA football tournament?

Chrissy Rouse crash: British Superbike racer dies age 26 after accident in Donington Park - what happened?

Lindsay Lohan ‘Falling For Christmas’ Trailer: Netflix Brings Out The Jolly

Looper Survey: The Absolute Best Better Call Saul Season According To Fans

How will Elon Musk pay for his proposed US$44B buyout of Twitter? Here’s what we know

How to turn off applications running in the background Windows 10 laptop does not consume battery

Barrie, Ont. woman wins $1 million in Lotto Max draw

Where was Jeffrey Dahmer’s house? Locations of childhood home, Grandmother’s house and apartment block

OTHER NEWS

Breaking thailand news, thai news, thailand news Verified News Story Network