Mega buyout collapses in US crypto
Galaxy Digital, an American company active in the fields of crypto-assets (trading, crypto-asset management, investment banking, mining, venture capital funds), announced in May 2021 that it intends to buy crypto depository -BitGo assets for $1.2 billion. The company announced on August 15 that it was ending its offering after BitGo failed to produce “audited financial documents” 2021. the year she was waiting for.
Custodians are intermediaries that offer secure private key storage solutions for crypto-asset portfolios held by institutional investors, such as hedge funds. They are often considered a fundamental link in the value chain in the crypto-asset universe, due to their role in the development of alternative finance within traditional financial players.
bitgo is seeking a $100 million fine
Galaxy Digital, which is currently listed on the Toronto Stock Exchange but was left listed on the Nasdaq, posted a loss of $554 million in the second quarter of 2022, more than tripled from the same period in 2021 due to crises. cryptocurrencies. When presenting the results, the company nevertheless stated that it wants to make acquisitions in the second half of the year.
BitGo, meanwhile, is seeking more than $100 million in fines from Galaxy Digital and is considering legal action. The company believes that it has submitted all the documentation necessary for the continuation of business.
Galaxy Digital’s acquisition of BitGo would be the crypto industry’s first billion-dollar deal. In late 2020, PayPal considered the acquisition of BitGo, according to market rumors, for development in cryptocurrencies, but a deal was not made.