Galaxy Digital refuses to buy BitGo crypto custodian

The decision was made after the platform did not provide audited financial statements for 2021

15.08.2022 - 13:30

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2 min

What’s new? Galaxy Digital, an investment company, has refused to buy cryptocurrency custodian BitGo. The $1,2 billion deal was announced back in May 2021. According to Galaxy’s statement, it was terminated after BitGo did not provide audited financial statements for 2021 by July 31, 2022, that meet the requirements of the agreement. The release also states that no termination fee is payable.

Galaxy’s press release

What else does the press release say? Galaxy founder and CEO Mike Novogratz said that the company aims to increase market share value by expanding its list of services for institutional clients. In particular, the company is preparing to launch Galaxy One Prime, this platform will combine trading, lending, and derivatives and offer custodial services. Galaxy will also continue the process of going public on the US Nasdaq Stock Exchange, he added.

Galaxy Digital was founded by Mike Novogratz, trader, investor, and former head of the Goldman Sachs branch in Latin America. It had $1,7 billion in assets under management at the end of Q2 2022. The company’s shares are traded on the Toronto Stock Exchange (TSX) under the ticker GLXY. As of August 15, 13:20 UTC, the price per security is $6,73, up by 3,62% per day, according to Investing.com.

BitGo was founded in 2013 by Mike Belshe and Ben Davenport. It is headquartered in Palo Alto, California. The platform provides custodial services by providing a multi-signature cryptocurrency wallet. It serves more than 500 institutional customers and 150 crypto exchanges. The average monthly transaction volume exceeds $20 billion.

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