Galaxy Digital Ends Agreement To Buy BitGo

Company continues to seek public listing in the US despite deal termination

article-image

Source: DALL·E

share
  • Galaxy CEO Mike Novogratz said on the company’s earnings call last week that the length of the acquisition process had been “frustrating”
  • Company reveals plan to launch a platform for institutions allowing trading, lending, derivatives and qualified custody

Galaxy Digital has terminated its acquisition agreement with crypto platform BitGo but still intends to go public, the company revealed Monday. 

BitGo did not deliver audited 2021 financial statements that comply with the requirements of the agreement by July 31, according to the company. No fees are connected to the termination. 

“Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner,” Galaxy CEO Mike Novogratz said in a statement. “We are committed to continuing our process to list in the US and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions.”

The company first revealed its intent to acquire BitGo in May 2021 in a cash and stock transaction valued at roughly $1.2 billion. Executives have said Galaxy planned to become a Delaware-based company and list the company publicly on the Nasdaq after the acquisition. 

A source familiar with the matter told Blockworks in April that the listing process — and SEC approval — has taken longer than expected. If Galaxy were to close the BitGo deal before incorporating in the US, the source added at the time, the company would still have to get regulatory approval for the purchase.

When asked about the BitGo acquisition on the company’s earnings call last week, Novogratz said the company has been in “constant contact” with the BitGo team. Galaxy posted a second quarter net loss of $555 million

“We’re evaluating what’s best for both businesses,” Novogratz said during the call. “It’s been frustrating that it’s taken as long as it has.” 

The planned acquisition of BitGo was a significant step toward allowing Galaxy Digital to provide a full set of prime broker-type services to institutional investors, including custody, lending, trade execution, pricing and administrative services, Andrew Young, an investment banking analyst at Architect Partners, previously wrote in a research note. 

Galaxy said in its Monday announcement that it plans to roll out Galaxy One Prime, a product for institutions that will integrate trading, lending, derivatives and qualified custody on one platform.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (11).png

Research

Union’s technical design brings measured improvements to crosschain interoperability. By combining a consensus-verified hub with novel constructs like state lenses and ZK proofs for client updates, Union achieves an interoperability protocol that is highly performant, trust-minimized, and scalable.

article-image

Crypto finds fundamentals, Chanos books profits and prediction markets make trouble

article-image

The token has crashed over 65% and been marked as dangerous due to its contract’s permissions

article-image

FOMC July minutes may hold the key to Powell’s speech tomorrow

article-image

Singapore’s largest bank is issuing crypto-linked structured notes on Ethereum, but the tokens will remain permissioned

article-image

Jupiter borrows Fluid’s innovative risk engine