Galaxy Digital won’t buy cryptocurrency custodian BITGO for $1.2 billion as the firm failed to provide audited financial statement by July 31. Mike Novogratz’s broker-dealer noted in athat no fees were paid in connection to the termination.
Although the deal collapsed, Galaxy Digital is committed to continuing its process to list in the US, said the firm’s founder Mike Novogratz. It is unclear why BitGo failed to prepare audit reports on time as the firm made no official statement regarding the matter at the time of writing.
The move comes after Galaxy Digital reported that its net comprehensive loss tripled to $554.7 million in Q2, citing the market downturn and failed investment strategies. However, despite the massive loss, Novogratz emphasized that the firm outperformed during a challenging market and macroeconomic environment.