Galaxy Digital, the crypto merchant bank headed by billionaire Hedge Fund Manager, Mike Novogratz, is acquiring the digital asset custodian, BitGo for a total sum of around $1.2 billion.
Wednesday’s announcement detailed that the acquisition deal is expected to close in the fourth quarter of 2021. Once closed, Galaxy Digital can position itself as one of the leading full-service crypto companies targeting institutions.
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A Cash and Stock Deal
The two companies have agreed on the involvement of both cash and stock to seal the deal. BitGo shareholders will receive 33.8 million of newly issued shares of Galaxy Digital common stock and the rest $265 million in cash.
BitGo shareholders will hold around 10 percent of Galaxy Digital after the closure of the deal. Additionally, the new owner will retain the entire BitGo workforce and BitGo Founder and CEO, Mike Belshe, will join Galaxy as Deputy Chief Executive and will also sit on the Board.
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“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology,” Novogratz said in a statement. “The power of the technology, solutions and people we will have as a result of this acquisition will unlock unique value for our clients and drive long-term growth for our combined business.”
Founded in 2013 as a crypto custodian, BitGo has…