Galaxy Digital decided it will not continue with planned acquisition of crypto custody firm.
Billionaire Mike Novogratz’s crypto investment firm Galaxy Digital has announced a termination of a proposed deal to purchase BitGo- a crypto custodian. Galaxy Digital is a digital asset and blockchain leader helping startups and individuals build on the web3 economy. The company deals in trading, investment banking, asset management, ventures, mining, and research.
Earlier the firm was in talks to acquire BitGo is a digital asset, trust , and security company founded in 2013 by Mike Belshe and Ben Davenport. The company was in talks to be acquired by Galaxy Digital for $1.2 Billion USD back in 2021. The company offers a multi-sig bitcoin wallet service. This is a service where the keys to the wallet are held by multiple users. BitGo wallets had three keys, one held by BitGo and two held by the owner of the wallet. BitGo is also the sole custodian for bitcoin which allowed users to recieve the tokenized version of bitcoin known as WBTC or Wrapped Bitcoin.
Galaxy Digital exercised termination rights of the 2021 acquisition offer stating that BitGo had failed to deliver audited financial statements for 2021 that would have complied with the pending agreement.At the time of this writing there are not fees that will be associated with this termination.
Mr. Novograt spoke on the focus of the company to take advantage of strategic opportunities and plans to grow in a sustainable manner. The company is also committed to become listed in the United States and provide clients with valuable prime solutions.
