Published: 01.04.2022
Article reading time:
2 minutes.
Cryptocurrency investment company Galaxy Digital has postponed the completion date for its acquisition of BitGo due to personnel changes.
BitGo specializes in storing digital assets. Initially, the deal was planned to close in the first quarter of this year, but Galaxy Digital decided to amend the original contract. This was announced by the CEO of the company Michael Novogratz (Mike Novogratz) during the income statement.
According to Novogratz, the companies failed to adjust the deal due to the fact that since May last year, when the parties entered into the deal, BitGo has hired about 150 new employees. However, Galaxy is still committed to integrating BitGo and becoming an institutional crypto platform, the businessman says.
The companies will renegotiate the terms of the deal so that it closes when Galaxy Digital obtains a license in Delaware. The acquiring company says that this will happen between the second and fourth quarters of 2022, when the US Securities and Exchange Commission gives its approval. If the deal does not take place before the end of the year, Galaxy is committed to pay BitGo $100 million.
Galaxy previously planned to close the deal by paying 33.8 million in newly issued shares or $1.2 billion and an additional $265 million in cash to settle the deal. However, under the new terms, the company will pay 44.8 million in new shares and $265 million in cash. The total volume of the transaction will be $1.15 billion.
Recall that earlier one of the largest investment banks in the US, Goldman Sachs, conducted an over-the-counter transaction using an option on Galaxy.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
