After more than a year of efforts to acquire digital asset custodian BitGo, Mike Novogratz’s cryptocurrency investment firm Galaxy Digital has decided to abandon the acquisition.
The company officially announced on Monday that Galaxy has terminated its acquisition of BitGo, citing breach of contract.
According to the statement, Galaxy exercised its right to terminate the transaction pursuant to the acquisition agreement after BitGo failed to provide audited financial statements for 2021 by July 31, 2022. Galaxy stated that no termination fee is payable in connection with the termination.
As previously reported, Galaxy originally announced plans to acquire BitGo in May 2021 as part of its plans to go public in the United States. After several delays in the acquisition, Galaxy was hoping to finalize the transaction by the end of 2022.
Despite closing the acquisition of BitGo, Galaxy still continues its path to a US listing on Nasdaq, CEO Novogratz said:
“Galaxy is positioned to take advantage of strategic opportunities to succeed and grow in a sustainable manner. We are committed to continuing our process of listing in the United States.”
As part of US listing plans, Galaxy is working to reorganize its operations to become a Delaware-based company. The firm previously expected Delaware domestication to become effective between Q2 and Q4 of 2022, subject to a review process with the US Securities and Exchange Commission.
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Galaxy is also focused on launching new products including its upcoming offering, Galaxy One Prime. Targeting institutional investors, Galaxy One Prime offers services such as trading, lending and derivatives, as well as access to qualified custodians that integrate “qualified blue-chip custodians”.
BitGo and Galaxy Digital did not immediately respond to Cointelegraph’s request for comment.
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