Galaxy Digital Looks the Other Way in BitGo Deal

Galaxy Digital, a crypto investment firm led by Mike Novogratz, terminates its efforts to acquire BitGo, a virtual currency custody platform. The investment company has been trying for over 12 months to close the BitGo deal. In an announcement on August 15, Galaxy Digital accused the crypto custodian of bleaching the acquisition contract.

The digital assets investment platform supported their move, saying it was within its rights. According to Galaxy Digital, the BitGo deal went south after the crypto custodian failed to provide last year’s audited financial books as of the last day of July this year. Since BitGo failed to honor their side of the contract, Galaxy Digital is off the hook for contract termination fees.

The Novogratz-led company announced the BitGo deal in May last year and wanted to use the acquisition to list in the US market. After several hiccups, the firm was expected to close the deal before the end of December this year. However, the investment firm is still on its path to going public in the United States. In a statement, Novogratz said his firm is still “positioned for success and [is ready to take advantage of] strategic opportunities.”

Its plans to list in the United States include moving its headquarters to Delaware. Galaxy Digital is waiting for the United States securities watchdog to approve its request to relocate its base to Delaware. Apart from going public, the cryptocurrency investment firm is working on adding more products to its menu. For example, it’s working to bring Galaxy One Prime (GOP) to life. GOP is a product focused on corporate clients looking to trade and lend assets. It also serves institutional investors with an appetite for derivatives or looking for high-end custody solutions.

The firm’s statement said it’s working to make “Galaxy a one-stop shop for institutions.”