Financial services firm Galaxy has renegotiated the terms of its acquisition of crypto custodian BitGo, according to its 2021 financial results.
Galaxy initially announced the $1.2 billion deal on May 5. The plan at that time was to make the purchase with $265 million in cash and the rest in 33.8 million newly issued shares of Galaxy Digital. That would have given BitGo shareholders 10% stake in Galaxy Digital.
The deal was expected to close in the fourth quarter of 2021, but the firm revealed today that the terms have been renegotiated. The two still intend to complete the proposed transaction but have extended the deal to the end of the year.
"We adjusted the deal some, for progress that BitGo has made," said CEO Mike Novogratz on today's earnings call. "They've hired close to 150 people or more than 150 people since we originally signed. And so, it's a bigger and better company. And we'll continue to work on integration side-by-side until we close the deal."
A source with knowledge of the process indicated that the completion of the deal is tied to prospective plans to go public on Nasdaq, which Galaxy highlighted in its press release Thursday. Other companies including Bullish and Circle are facing similar roadblocks on their paths to list in the US, industry sources say.
"As previously announced, the Company intends to complete its proposed reorganization and domestication to become a Delaware-based company, and subsequently list on the Nasdaq, upon completion of ongoing SEC review and subject to stock exchange approval of such listing," Galaxy said Thursday.