Galaxy digitally ended agreement on the purchase of Bitgo
Galaxy digitally ended agreement on the purchase of Bitgo
- Galaxy CEO Mike Novogratz said at the company's conference conference last week that the length of the takeover process was "frustrating".
- The company announces plans for the introduction of a platform for institutions that enable trade, lending, derivatives and qualified custody
Galaxy Digital has terminated its takeover agreement with the Kryptoplattform Bitgo, but continues to intend to go to the stock exchange, the company announced on Monday.
According to the company,Bitgo has not submitted a certified annual financial statements 2021 until July 31, which meets the requirements of the agreement. No fees are associated with the termination.
"Galaxy remains positioned for success and uses strategic opportunities to grow sustainably," said Galaxy-CEO Mike Novogratz in an explanation. "We endeavor to continue our list of stockings in the USA and offer our customers a first-class solution that really turns Galaxy into a one-stop shop for institutions."
The company announced its intention for the first time in taking over Bitgo in a bar and stock transaction worth around $ 1.2 billion in a bar and stock transaction. Managers said that Galaxy plans to become a company based in Delaware and to publicize the company at the Nasdaq after the takeover.
A source familiar with the matter said Blockworks announced in April that the listing process-and the SEC permit-took longer than expected. If Galaxy completed the Bitgo deal before integrating the United States, the source at the time would have to obtain the official approval for the purchase.
When asked about the Bitgo acquisition at the company's conference call last week, Novogratz said that the company was in “constant contact” with the Bitgo team. Galaxy recorded a net loss of $ 555 million in the second quarter.
"We check what is best for both companies," said Novogratz during the conversation. "It was frustrating that it took so long."
The planned takeover of Bitgo is an important step to enable Galaxy digitally to offer institutional investors a complete range of prime broker services, including depot, credit, trade execution, price and administrative services, according to Andrew Young, investment banking analyst at Architect Partners, wrote beforehand in a research note.
In his announcement on Monday,Galaxy said that it is planning to introduce Galaxy One Prime, a product for institutions, trade, lending, derivatives and qualified custody will integrate on a platform.
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The Post Galaxy Digital Ends Agreement to Buy Bitgo is not a financial advice.