Investment company Galaxy Digital refused to acquire the operator of custodial services and cryptocurrency security solutions BitGo due to a breach of the agreement.
According to Galaxy Digital, the decision was made after BitGo “failed to provide audited financial statements for 2021 that meet the requirements of the agreement by July 31.” There will be no termination fee.
Recall that in May last year, the investment company announced the acquisition of the BitGo service for $1.2 billion. However, in March, the media reported that the terms of the deal were being reviewed.
Galaxy Digital CEO and Founder Mike Novogratz said the company remains focused on success and is pursuing strategic opportunities for sustainable growth.
“We intend to continue our US listing process and provide our customers with a first-class solution that makes Galaxy a one-stop shop for institutions,” Novogratz said.
In April, Galaxy Digital delayed its acquisition of BitGo until the end of 2022. The failed merger comes just a week after Galaxy Digital posted a $554 million loss in the second quarter.
Source: Bits
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