Galaxy Digital delayed the BitGo acquisition for later in 2022 and will follow Galaxy’s domestication in Delaware that will become effective between the second and last quarter of 2022 so let’s read more in today’s latest cryptocurrency news.
Crypto investment company Galaxy Digital delayed the BitGo acquisition and hasn’t managed to finalize the acquisition of the digital asset custodian during the first quarter of 2022 as the company planned originally. Mike Novogratz noted:
“We’ve adjusted the deal some, for progress that BitGo has made.”
He added that Galaxy remained committed to integrating BitGo and becoming an institutional crypto platform with the companies continuing to work on integration. Galaxy Digital and BitGo made new negotiations about the acquisition to happen after following the domestication of the company as a Delaware corporation with the domestication will become effective between Q2 and Q4 this year and is subject to a review process with the US SEC.
In case Galaxy fails to complete the transaction by the end of 2022, the company undertakes to pay a fee:
“A reverse termination fee of $100 million will be payable by Galaxy Digital to BitGo in certain circumstances if the transaction has not been completed by December 31, 2022, subject to specific provisions.”
Galaxy planned to close the acquisition by the end of the year and paid 33.8 million in the newly issued Galaxy shares of $1.2 billion with $265M in addition to settle the deal. In Conjunction with the BitGo acquisition, Galaxy plans to go public in the US in the first three months of 2022 and the company debuted its first-ever listing on Toronto TSX Venture Exchange back in 2018. Galaxy shares crashed since the company announced the acquisition, it dropped from $30 to below $12 and at the time of writing, the stock is trading at $17 down by 14% over the past day.
Galaxy reported that its net comprehensive income increased by 55% from $336 million in Q3 2021 to $521 milion in the last quarter of the year. At the same time, the net comprehensive income is expected to be a loss of $110 million to $130 million. The company is known for posting losses a few times in the past years and in Q2 2021, Galaxy posted a loss of $176 million with Novogratz saying that the company remained profitable during the first half of 2021.
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