Galaxy Digital terminates BitGo acquisition, citing breach of contract

Galaxy Digital terminates BitGo acquisition, citing breach of contract

After over a year of trying to acquire BitGo digital asset custodian, Mike Novogratz’s cryptocurrency investing firm Galaxy Digital decided to end the acquisition.

Galaxy announced Monday that it had terminated BitGo’s acquisition of the company, citing a breach in contract.

The statement states that Galaxy decided to terminate the agreement in accordance with the acquisition agreement following BitGo’s failure to provide audited financial statements for 2021 and 2022 by July 31, 2022. Galaxy stated that there is no termination fee.

Galaxy initially announced its intention to acquire BitGo by May 2021 in order to make it public in the United States. Galaxy expected to close the deal by 2022, despite multiple delays.

Galaxy continues to work towards the U.S. listing of Nasdaq despite the BitGo acquisition being closed down, CEO Novogratz stated.

“Galaxy is still well-positioned to succeed and to capitalize on strategic opportunities to grow in an sustainable way. We will continue our efforts to list in the United States.

Galaxy will reorganize its operations in Delaware as part of U.S. listing plans. According to the U.S. Securities and Exchange Commission review, the firm had previously anticipated Delaware domestication becoming effective in Q2 and Q4 2022.

Related: Argo Blockchain continues to cash out BTC in order to repay the Galaxy Digital debt

Galaxy is also focusing on the launch of new products, including Galaxy One Prime. Galaxy One Prime is a service that targets institutional investors. It offers services such as trading, lending, and derivatives. In addition, it provides access to qualified custody which integrates “qualified blue chip custodians”.

Cointelegraph reached out to Galaxy Digital and BitGo for comment but they did not respond immediately.

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