Analysis of Galaxy Digital's $1.2bn Acquisition of BitGo

On March 30, 2022, Galaxy Digital amended and restated its initial May 5, 2021 merger agreement with BitGo. Under the new terms, total consideration included $265mm cash and 44.8mm newly issued common stock shares of the successor to GDH Ltd. as Galaxy pursues its U.S. Nasdaq listing. The amendment included an additional 11 million shares of common stock consideration, most likely in response to the ~30% decline in Galaxy Digital's share price from the initial May 5, 2021 M&A announcement. 

Galaxy's share price performance has been lackluster as it has been embroiled in the broader slow down affecting both digital asset and traditional equity markets.