Galaxy Digital is currently acquiring BitGo for $ 1.2 billion to be settled in stocks and cash
Galaxy Digital, owned by popular investor Mike Novogratz, will acquire BitGo, a leading independent infrastructure provider for digital assets. The deal is valued at approximately $ 1.2 billion and is paid out in both stocks and cash.
In a press release yesterday, Galaxy Digital said: “The acquisition positions Galaxy Digital as the world’s leading full-service platform for institutions seeking access to the crypto economy and offering an unprecedented range of industry-leading products and services on a large scale.”
Several reports surfaced last month suggesting the two companies are in advanced talks about an acquisition. Mike Novogratz, CEO and founder of Galaxy Digital, said the BitGo acquisition would make his company a one-stop shop for institutions and step up their efforts to institutionalize ecosystems for digital assets and blockchain technology. Novogratz added, “The power of technology, solutions and people we will have as a result of this acquisition will unlock unique value for our customers and drive the long-term growth of our combined business. We are excited to welcome Mike Belshe and the talented BitGo team to Galaxy Digital. “
Under the terms of the agreement, BitGo shareholders are expected to receive 33.8 million newly issued common shares of Galaxy Digital. In addition, they will be paid $ 265 million in cash, bringing the total value of the deal to approximately $ 1.2 billion.
BitGo is one of the leading regulated custodians in the cryptocurrency space. Services are currently provided for over 150 stock exchanges and 400 institutional customers. BitGo controls over $ 40 billion in assets under management by supporting the custody of over 400 coins and tokens. BitGo CEO and Founder Mike Belshe said joining Galaxy Digital is an exciting new chapter for the company, giving its customers access to a wide variety of financial solutions.
Galaxy Digital plans to go public in the US
Galaxy Digital is a publicly traded company in Canada. However, the company plans to officially list on a US stock exchange this year. In this regard, the company’s board of directors approved a proposed reorganization and domestication aimed at helping the company achieve its goal of going public in the United States.