Today Galaxy Digital announced the termination of a $1.2 billion deal to buy digital asset custodian BitGo that was first announced in May 2021. The stated reason was BitGo’s failure to deliver audited financial statements for 2021 by July 31, which Galaxy claims is termination grounds without any penalty. Last week Galaxy announced a quarterly loss of $554.7 million but has a liquidity position of $1.5 billion.
In the original deal, Galaxy was to pay $265 million in cash and 33.8 million shares, with Galaxy’s stock price around $27 at the time. At the end of March this year, the terms were revised so that Galaxy would pay the same in cash but 44.8 million in stock. The stock price was US$16 shortly after the revision but closed at $6.74 on Friday.
Canada-based Galaxy has been planning to relocate to Delaware and list on Nasdaq, reiterating that intention today.
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