Acquisition of BitGo Delayed by Galaxy Digital to Late 2022
2022.04.01 21:56
Acquisition of BitGo Delayed by Galaxy Digital to Late 2022
- Galaxy Digital was unable to finalize the acquisition of the digital asset custodian BitGo.
- 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.
- BitGo and Galaxy have renegotiated the terms of the acquisition.
Galaxy Digital, a cryptocurrency investment firm, was unable to finalize the acquisition of the digital asset custodian BitGo. The acquisition was originally planned to take place in the first quarter of 2022.
Galaxy Digital CEO Mike Novogratz announced in an earnings call on Thursday that the firm has made changes to the original terms of its acquisition of BitGo.
The CEO has noted that BitGo has hired around 150 people since the firm originally signed the deal in May last year. Novogratz stated:
We have adjusted the deal some, for the progress that BitGo has made.
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.
BitGo and Galaxy have renegotiated the terms of the acquisition. According to an official report, one of the aspects that was renegotiated is that the acquisition is to take place following the immediate domestication of Galaxy Digital as a Delaware corporation.
The domestication will come into effect between Q2 and Q4 of 2022. The firm noted that the domestication will also be subject to a review process by the United States Securities and Exchange Commission.
In the case that Galaxy fails to see the acquisition through before the end of 2022, they will be expected to pay a significant fee. So far, the termination fee stands at a whopping $100 million, which will have to be paid to BitGo. The fee will be subject to certain specifications.
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