Galaxy Digital undertakes after the Bitgo deal is terminated for listing on the Nasdaq

Galaxy Digital, one of the largest investment managers on the cryptom market, will continue with a planned listing on the NASDAQ, although it has canceled plans for the purchase of the crypto custody platform Bitgo for $ 1.2 billion.

The group listed in Canada announced on Monday that it withdraws from the bar and stock business, and referred to the failure of Bitgo, tested annual financial statements for the year until December 2021.

The failure of the deal is a blow to Galaxy that has hoped to interest more fund managers for the advantages of digital assets and blockchain technology with the deal for Bitgo, which specializes in the safe storage of the assets of crypto investors.

The value of crypto-assets has also broken in in the meantime, with the price of tokens like Bitcoin since November has dropped by two thirds. Galaxy recorded a loss of $ 555 million in the second quarter

The agreement between Galaxy and Bitgo was one of the largest M&A deals in the industry, when it was announced in May last year, partly dependent on the fact that Galaxy Digital is approved by the supervisory authorities and the shareholders to restructure themselves as a company listed in Delawaren.

"We are still in full swing with the stock market noding," said Mike Novogratz, founder and CEO, in an interview. However, Galaxy has not specified a certain time frame for the planned listing on the Nasdaq. A list still requires the approval of the SEC for its restructuring in Delaware.

"We have not given any evidence of when the process will be complete," said Galaxy Digital.

However, the merger met with hurdles when Galaxy from the SEC did not receive any official approval for restructuring as a company based in Delaware in the expected time frame. Until March 2022, some contractual conditions have been negotiated, including the number of Galaxy shares that Bitgo shareholders are to receive.

Bitgo did not answer a request for comment. Galaxy does not have to pay a termination fee that could have exceeded $ 100 million, the company added.

The investment company for digital assets has so far not been successful in convincing the US market supervisory authority to approve its application for an exchange-traded Bitcoin fund, which was first submitted in April 2021.

GALAXY Digital is not the only company in the crypto industry that has to push back an intended listing. Subject to approval by the SEC, the Bullish crypto exchange has also postponed plans for listing on the New York stock exchange by a deal with a purpose company, the Far Peak Acquisition Corp..