Galaxy Digital terminates $1.2B acquisition of BitGo

Galaxy Digital said that it has terminated the $1.2 billion proposed the acquisition of crypto custodian BitGo, a high-profile deal they announced in May last year.

BitGo had been required to deliver audited financial statements for 2021 by July 31 and didn't do so, thus violating the terms the two firms had agreed upon last year, Galaxy Digital said in a public statement.

Galaxy added that the termination of the deal won’t incur the company any fee. Shares of Galaxy Digital, which trades in Toronto, jumped on the news.

The proposed acquisition was supposed to be crypto sector’s first $1 billion deal. The terms of the acquisition allowed Galaxy Digital to issue 33.8 million new shares, and a $265 million cash component.