BitGo Stock Market Update: Galaxy Digital's $1.2B Deal

Galaxy Digital's $1.2B deal has sent shockwaves through the cryptocurrency space, and BitGo is right in the middle of it. The deal is a massive vote of confidence in the future of digital assets.

The acquisition will give Galaxy Digital a significant boost in its institutional offerings, allowing it to better compete with other players in the market.

Galaxy Digital plans to list on the US stock exchange later this year. This comes on the heels of its acquisition of BitGo, a US-regulated crypto custody specialist, for $1.2 billion in stock and cash.

The acquisition will establish Galaxy Digital as a one-stop shop for institutions, significantly accelerating its mission to institutionalize digital asset ecosystems and blockchain technology. This is according to Michael Novogratz, Galaxy's CEO and founder.

Galaxy Digital will retain all current BitGo employees and enter into further employment agreements with key members of the company's management team. Over 400 new global clients will join Galaxy Digital as a result of the acquisition.

The deal is expected to close in Q4, subject to regulatory scrutiny and approval by vote by Galaxy shareholders. BitGo shareholders will own about 10% of the combined company.

Galaxy Digital will undergo a domestication process, intending to list on the US stock exchange later this year.

A unique perspective: Stock Exchange

Galaxy Digital is planning to list on a major U.S. exchange, with a direct listing or an initial public offering (IPO) as the most likely options.

The company has already filed a registration statement with the U.S. Securities and Exchange Commission (SEC), which is a crucial step in the listing process.

Galaxy Digital's CEO, Mike Novogratz, has stated that the company is exploring various options for its U.S. listing, including a direct listing, which would allow existing shareholders to sell their shares without raising new capital.

A direct listing would save the company the costs associated with an IPO, but it would also require the company to meet certain listing requirements, such as having a minimum number of public shareholders.

Galaxy Digital's U.S. listing plans are expected to provide the company with access to a broader investor base and increased liquidity for its shares.

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Galaxy Digital's $1.2B Acquisition of BitGo is a game-changer for the digital asset industry.

Galaxy Digital is buying BitGo, a U.S.-regulated crypto custody specialist, for $1.2 billion in stock and cash. The deal is valued at around $1.2 billion based on Galaxy Digital's closing share price on May 4.

The acquisition establishes Galaxy Digital as a one-stop shop for institutions, significantly accelerating its mission to institutionalize digital asset ecosystems and blockchain technology. This is a major milestone for Galaxy Digital, allowing it to expand its services and reach new clients.

Galaxy Digital will retain all current BitGo employees and enter into further employment agreements with key members of the company's management team. This move suggests a commitment to integrating BitGo's operations and expertise into Galaxy Digital's existing business.

The acquisition is expected to close in Q4 2021, subject to regulatory scrutiny and approval by vote by Galaxy shareholders. This timeline suggests that the deal is on track to meet its expected completion date.

Here are the key terms of the deal:

Galaxy Digital acquired BitGo for $1.2 billion. This deal is expected to close in Q4 2021.

The acquisition is a significant move for Galaxy Digital, as it will allow the company to serve the needs of institutions looking to store digital assets or use them for transacting. This will unlock unique value for Galaxy Digital's clients and drive long-term growth for the combined businesses.

BitGo shareholders will receive 33.8 million newly issued Galaxy Digital common stock and $256 million in cash. Based on Galaxy Digital's closing share price on 4 May, the transaction is valued at around $1.2 billion.

The acquisition will also bring over 400 new global clients to Galaxy Digital, and introduce multiple new sources of business lines to the company. This will significantly accelerate Galaxy Digital's mission to institutionalize digital asset ecosystems and blockchain technology.

Galaxy Digital will retain all current BitGo employees and enter into further employment agreements with key members of the company's management team.

BitGo stock has been making headlines lately, and one of the most significant events is the merger termination with Galaxy Digital. Galaxy Digital, a cryptocurrency-focused financial services firm, had agreed to buy BitGo for $1.2 billion in stock and cash.

The acquisition was expected to close in Q4 2021, but it appears that the deal has fallen through. BitGo has announced that it intends to hold Galaxy Digital legally accountable for its improper decision to terminate the merger agreement.

Galaxy Digital had promised to pay a $100 million reverse break fee if the deal was terminated, but it seems that the company is trying to avoid paying this fee. BitGo has hired litigation powerhouse Quinn Emanuel to take legal action against Galaxy Digital.

The termination of the merger agreement is a significant blow to BitGo, and it's likely that the company's stock will be affected by this news. It's worth noting that Galaxy Digital's stock has been performing poorly, and the company has reported a $550 million loss in the past quarter.

Here are the key dates related to the merger termination:

It's unclear what will happen next, but it's clear that BitGo is not going to let Galaxy Digital get away with terminating the merger agreement without consequences.