Michael Novogratz-led cryptocurrency-focused financial services company Galaxy Digital Holdings announced that it will acquire digital asset custodian BitGo between now and October 2022. The move was initially planned for the first quarter of the year.

Delay the acquisition

In May of last year, Galaxy Digital agreed to buy BitGo for approximately $1.2 billion. Under the deal, shareholders of the latter were supposed to receive 33.8 million in newly issued Galaxy Digital common shares and $265 million in cash. The deal was intended to be completed by the end of March 2022.

However, in a recent announcement, Novogratz’s company revealed that the acquisition will occur between the second and fourth quarters of 2022, based on the SEC’s ongoing review policies:

“The acquisition is expected to close immediately upon the domestication of Galaxy Digital as a Delaware corporation, subject to the approval of the company’s shareholders, as well as certain other closing conditions related to the acquisition and regulatory approvals. The company anticipates that the taming will be effective between the second and fourth quarters of 2022, subject to the SEC’s ongoing review process.”

In addition, BitGo shareholders will get 44.8 million (instead of the aforementioned 33.8 million) of newly issued common shares of Galaxy Digital due to the decline in the price of GLXY.

In the event that the deal is not completed by the end of 2022, Novogratz’s organization will have to pay a $100 million reverse termination fee to BitGo.

Mike Novogratz’s crypto stance

When talking about Galaxy Digital, it is worth mentioning its CEO, Michael Novogratz, who is among the biggest supporters of the cryptocurrency industry. The 57-year-old investor often takes his positive view on the matter as his favorite assets are Bitcoin and Ethereum.

Novogratz was unconcerned about the future of the asset class despite the crypto market crash last summer. Back then, he described bitcoin as a better version of gold. He added that cryptocurrencies could make the future financial network “more transparent and fairer.”

Shortly after, he reiterated his support for BTC, seeing it as the digital version of gold for the next 3,000 years. However, Novogratz suggested that Ethereum could surpass it and become the “biggest cryptocurrency one day.”

His latest comments on the sector came last month when President Joe Biden signed the executive order on digital assets. Novogratz opined that the effort was a “welcome compromise on the part of the administration,” which could create an opportunity for the US to become the world leader in the crypto universe.

Subsequently, he predicted that blockchain technology could transform the world.

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This post Michael Novogratz Galaxy Digital to acquire BitGo later in 2022

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