Galaxy Digital says it has renegotiated the terms of its BitGo acquisition

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.


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"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. 

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Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to or follow her on Twitter for updates @AislinnKeely.
Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].