Galaxy Digital Cancels The Acquisition Of BitGo, Citing A Breach Of Contract

After announcing plans to buy BitGo in May 2021, Mike Novogratz’s Galaxy Digital later backed out of the agreement, but it is still working toward a US IPO.

Galaxy has terminated the BitGo acquisition, citing a breach of contract, the firm officially announced on Monday.

In accordance with the acquisition agreement, Galaxy Digital was entitled to terminate the arrangement when BitGo failed to submit audited financial accounts for 2021 by July 31, 2022, according to the statement. Galaxy stated that there is no termination cost associated with the termination.

As was previously reported, Galaxy first disclosed intentions to buy BitGo as part of its preparations to list on the American stock exchange in May 2021. Galaxy had hoped to complete the acquisition by the end of 2022, but there had been several delays.

Despite winding down the BitGo acquisition, Galaxy still continues its path to the U.S. listing on Nasdaq, CEO Novogratz said, stating:

“Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner. We are committed to continuing our process to list in the United States.”

Galaxy Digital is seeking to restructure its operations

Galaxy is seeking to restructure its operations so that it can become a Delaware-based business as part of the ambitions for a U.S. listing. The company had previously projected that Delaware domestication would take effect between the second and fourth quarters of 2022, pending a review by the U.S. Securities and Exchange Commission.

Additionally, Galaxy is still committed to introducing fresh goods, such as its upcoming Galaxy One Prime model. With institutional investors as its target market, Galaxy One Prime offers services like trading, lending, and derivatives along with access to qualified custody that includes “certified blue-chip custodians.”

Inquiries for comment from Cointelegraph were not immediately returned by BitGo or Galaxy Digital.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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