Galaxy Digital is to press on with a planned listing on Nasdaq even as it called off plans to buy crypto custody platform BitGo for $1.2bn. The Canadian-listed group said it was pulling out of the cash and shares deal, alleging BitGo had failed to provide audited financial results for the year to December 2021. BitGo disputed Galaxy’s statement and said it intended to hold Galaxy Digital legally responsible for its “improper decision” to terminate the deal.
The deal’s failure is a blow to Galaxy, which had hoped to interest more fund managers in the benefits of digital assets and blockchain technology with the deal for BitGo, which specialises in securely holding crypto investors’ assets. Galaxy recorded a $555mn loss in the second quarter, hit in part by the collapse of the stablecoin terra and its related cryptocurrency, luna. The agreement between Galaxy and BitGo was one of the industry’s largest M&A deals when it was announced in May last year, in part contingent on Galaxy Digital receiving regulatory and shareholder approval to reorganise as a Delaware-listed company.