Galaxy Digital’s purchase of BitGo was delayed and will not occur until October 2022.
Galaxy Digital Holdings, the cryptocurrency-focused financial services business run by Michael Novogratz, said that it would buy digital asset custodian BitGo between now and October 2022. The transfer was initially scheduled for the first quarter of the year.
Galaxy Digital agreed to acquire BitGo for around $1.2 billion in May of last year. The deal stipulated that the latter’s stockholders would get 33.8 million freshly issued Galaxy Digital common stock and $265 million in cash. The transaction was scheduled to close by the end of March 2022.
However, Novogratz’s firm recently announced that the purchase would occur between Q2 and Q4 of 2022, depending on the outcome of the continuing SEC review policies:
“The purchase is scheduled to complete promptly upon Galaxy Digital’s domestication as a Delaware corporation, subject to shareholder approval and compliance with certain acquisition-related closing conditions and regulatory approvals. Domestication is expected to take effect between Q2 and Q4 of 2022, subject to the outcome of the current SEC review process.”
Additionally, BitGo stockholders will get 44.8 million (rather than 33.8 million) newly issued Galaxy Digital common stock as a result of the decline in the price of GLXY.
If the purchase is not completed before the end of 2022, Novogratz’s business will be required to pay BitGo a $100 million reverse termination fee.
Mike Novogratz’s Cryptocurrency Position
When discussing Galaxy Digital, it’s worth emphasising its CEO – Michael Novogratz – who is one of the industry’s leading proponents. The 57-year-old investor often expresses his optimism on the subject, since his preferred assets are Bitcoin and Ethereum.
Despite the crypto market’s summer meltdown, Novogratz remained unconcerned about the asset class’s future. He referred to bitcoin at the time as a “better form of gold.” He continued by stating that cryptocurrencies have the potential to make the future financial network “more transparent and equitable.”
He quickly reaffirmed his support for BTC, describing it as the digital equivalent of gold for the next 3,000 years. However, Novogratz said that Ethereum might eventually eclipse Bitcoin and become the “largest cryptocurrency.”
His most recent remarks on the industry came last month, after President Joe Biden’s executive order on digital assets. Novogratz said that the initiative was a “welcomed involvement on the part of the government,” and that it may pave the way for the United States to become the worldwide leader in the crypto cosmos. Following that, he claimed that blockchain technology will revolutionize the globe.