What is Galaxy Digital's BitGo acquisition?

The acquisition was agreed in May 2021, with San-Francisco-based BitGo set to help Galaxy Digital expand its offerings for institutional investors. The transaction, the first $1 billion deal in the crypto industry, had an anticipated close in Q4 last year.

Who owns BitGo?

Mike Novogratz’s Galaxy Digital Holdings agreed to buy crypto custodian BitGo Inc. in a cash and stock transaction valued at about $1.2 billion. Galaxy is paying $265 million in cash and is issuing 33.8 million shares to finance the acquisition. BitGo shareholders will own 10% of the company.

Why did Galaxy abandon BitGo?

Galaxy then sent BitGo a notice on August 12 that it was seeking to abandon the takeover, then publicly announced the decision three days later, citing the failure to provide audited 2021 statements by July 31, without explaining the details. I cover cryptocurrency for Forbes Digital Assets.

Does Galaxy Digital still have $1 billion in cash?

Galaxy Digital recently reported a second-quarter loss of $554.7 million. But CEO Michael Novogratz said the company still had $1 billion in cash in the company’s earnings call on August 8. Editor’s Note: The quote from Michael Wursthorn regarding BitGo’s statement was updated for clarity.