The financial services company Galaxy Digital Holdings has stated that it no longer plans to acquire crypto custody provider, BitGo. Galaxy Digital has used its right to terminate the agreement with BitGo which was made in May 2021. The firm said that the decision was taken because the custody provider did not meet the requirements of the agreement.
BitGo could not deliver audited financial statements from 2021. These statements were supposed to be in compliance with the agreement’s terms and conditions. Moreover, there is no termination fee applicable over the termination of the agreement. Nonetheless, the deal was the first billion-dollar agreement within the crypto sphere. Previously, Galaxy delayed its acquisition plan till October.
The deal was valued at almost $1.2 billion. Galaxy Digital was meant to issue 33.8 million new shares and a $365 cash component as a part of this deal. The financial services company aimed to extend its offering to institutional investors through this acquisition. Furthermore, the planning addition of services included investment banking, tax services, and prime lending.
Galaxy Digital Continues to Aim for More Strategic Growth
While commenting on the BitGo acquisition issue, the CEO and Founder of Galaxy Digital, Mike Novogratz said, ”Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner. We are committed to continuing our process to list in the U.S. and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions.”
Galaxy Digital continues to build on its plan of becoming a Delaware-based company. Also, it plans to get listed on the NASDAQ. However, the company is due for completion of the SEC’s review and it also requires a stock exchange approval for this listing.
Furthermore, the company intends to implement its business objectives and improve the long-term progress of investors. It is also reported that the firm plans to launch Galaxy One Prime to offer trading, lending, and derivatives for institutional investors. These investors could be able to access these services and qualified custody through a single platform. These platforms will leverage in-house technology and multi-faceted custodial architecture for users as well.
Nonetheless, the announcement of Galaxy Digital came after it reported a Q2 loss of around $554.7 million. It has upscaled from a loss of $183 million a year ago. During the earning call of the company, Novogratz said that they still have about $1 billion in cash. The second half of the fiscal year holds importance for the company’s performance.