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Galaxy Digital, a crypto investment business, has stated that its acquisition of BitGo has been postponed. The crypto exchange’s acquisition was intended to be completed in the first quarter of 2022. The company’s leader, Mike Novogratz, identified certain significant aspects of the transaction during an earnings call on Thursday, and the amended statement occurred at that time.

During an earnings call, Novogratz broke the news

According to Novogratz, the takeover conditions have been modified, with several important adjustments already made to the initial terms. In his comments, he stated that the agreement had been changed owing to recent developments at BitGo. After signing the purchase agreements with Galaxy Digital in May 2021, Novogratz said the business hired around 100 more people.

He also stated that the firm was still working to integrate itself with the BitGo platform to become a larger institutional-based exchange. Another update stated that the merger would occur when both companies agreed to renegotiate their contracts. This was due to Galaxy Digital becoming a Delaware corporation.

Although the domestication will not take effect until the SEC approves it, it is expected to happen in this year’s second or fourth quarters.

Galaxy Digital provides an update on the transaction

If Galaxy Digital does not meet its obligations before the end of the year, the investment firm will be fined. According to the documents, if Galaxy Digital fails to complete the deal by December 31, BitGo will demand $100 million in compensation. As previously stated, the transaction was expected to be completed by the first quarter of this year. Galaxy Digital will give up 33.8 million Galaxy shares as part of the deal.

The company might potentially pay $1.2 billion in flat fees now and the remaining $265 million afterward. BitGo will get 44.8 million Galaxy shares and the equivalent amount at a later date under the newly agreed amended conditions. Aside from the acquisition, Galaxy Digital is considering going public in the United States. Galaxy’s shares have plummeted from about $30 to $12 in response to the deal. Even though Galaxy Digital has been losing money in recent months, the company’s top executives claim that the first quarter was a success.

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