Cryptocurrency

Galaxy digital to buy BitGo? The company declined to buy the cryptocurrency depository

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Galaxy Digital to buy BitGo? Galaxy Digital, a company owned by bitcoin investor Mike Novogratz, has changed its mind about buying the BitGo cryptocurrency depository

Investment management company Galaxy Digital has changed its mind about buying cryptocurrency depository BitGo for $1.2 billion, the company said in a press release. Galaxy Digital said the depository didn’t submit an audit of its financial position by July 31.

It was previously reported that Galaxy Digital had bought BitGo. Galaxy Digital founder Mike Novogratz said that despite the deal’s failure, the company plans to continue going public in the United States. The company also said it plans to continue to pursue sustainable growth opportunities. At the time of writing, BitGo had no comment on the deal’s breakdown. What exactly caused BitGo’s failure to prepare the audit on time is unclear.

At the beginning of August it became known that Galaxy Digital had reduced its investments in startups to $753.9 million due to market conditions. The reduction in investment spending may also be due to a tripling of the firm’s losses. Galaxy Digital’s Q2 losses nearly tripled to $554.7 million, and Galaxy Digital founder Mike Novogratz said that despite significant losses, the firm managed to save more than $1.5 billion, including $1 billion in cash.

The BitGo purchase was first reported back in May 2021. It was also reported that the deal would be worth $1.2 billion in cash and Galaxy Digital stock (33.8 million shares) when the company goes public on the U.S. exchange.

Back in December 2020, PayPal also changed its mind about buying BitGo. The official reason for the disruption is still unknown, but in an interview with the media, BitGo head Mike Belsch claimed that the depository was not profitable because it was in “growth mode.”

We previously reported that Sam Bankman-Fried accused crypto giants of being indifferent to weakened companies



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