Cryptocurrency News

Citing a Contract Breach, Galaxy Digital Terminates Acquisition of BitGo

For more than a year, Galaxy Digital has been trying its best to acquire BitGo. BitGo is a digital asset custodian that Mike Novogratz’s Galaxy Digital wants to benefit from.

However, things are not looking well as there are possibilities that Galaxy Digital may not proceed with the acquisition of BitGo.

Galaxy Digital Drops the Acquisition Deal

It had been a year since Galaxy Digital had been attempting to acquire BitGo. The company has announced that it has now dropped the idea of acquiring BitGo.

According to the investment firm, it is no longer going to proceed with the acquisition deal as it has reasons to believe BitGo is in breach of contract.

Citing the breach, Galaxy Digital announced on Monday it had dropped the idea of proceeding with the acquisition any further.

Point Raised by Galaxy Digital

According to the officials at Galaxy Digital, they had demanded that BitGo provides them with audited financial statements for the year 2021. The firm had demanded that the request must be fulfilled by July 31, 2022.

However, BitGo failed to comply with the request and no audited data was provided by the digital asset custodian.

As the firm failed to provide the requested data, they invoked their right of deal termination, which would see them acquire BitGo.

Galaxy Digital also announced that it was responsible or liable to pay no fees or fines as a result of canceling the acquisition agreement.

Initial Announcement by Galaxy Digital

It was back in 2021 when Galaxy Digital had initially made the announcement of acquiring BitGo. At that time, Galaxy Digital had announced that they were planning to make a public debut, and acquiring BitGo was part of their roadmap to the public listing.

However, the entire process was plagued and dragged by the delays that were caused mainly by the teams handling the matter at BitGo.

Despite the delays, Galaxy Digital was determined to acquire the company. Finally, Galaxy Digital announced that it would complete the acquisition deal by the end of 2022.

Turns out, the entire deal has fallen apart as BitGo fell short on their claims and failed to fulfill the requirements that were expected of them.

Galaxy Digital is not hindered

Following the announcement by Galaxy Digital, many thought that the company may not go for a public debut. However, Galaxy Digital has confirmed that it plans on proceeding with its public debut.

Galaxy Digital has proven to be very pro when it comes to cryptocurrencies. Galaxy Digital is among the companies that were first to adopt the likes of Dogecoin (DOGE) on its platform.

This shows that despite the letdown, Galaxy Digital is determined to make its public debut and bring more adoption to cryptocurrencies.

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