What happened to Galaxy Digital's BitGo deal?

Digital asset investment firm Galaxy Digital called off its proposed $1.2 billion acquisition of Palo Alto, California-based BitGo —severing what would have been one of the largest deals in crypto history.

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.

How much cash does Galaxy Digital have?

In the company’s earnings call, Novogratz said Galaxy Digital had about $1 billion in cash on hand. Galaxy Digital said today it is waiting for the SEC’s review and stock exchange approval for a Nasdaq listing. BitGo has hired the California-headquartered law firm Quinn Emanuel to take appropriate legal action, it said.

Is galaxy trying to walk away from $100 million breakup fee?

Galaxy, an investment firm, is trying to walk away from a $100 million breakup fee. The company announced Monday that it was exercising “its contractual right to terminate” the cash-and-stock transaction. That doesn’t sit well with BitGo, which provides custody services for institutions.