Galaxy Digital Calls Off $1.2B Deal For Crypto Custody Firm BitGo

Digital asset investment firm Galaxy Digital called off its proposed $1.2 billion acquisition of Palo Alto, California-based BitGo—severing what would have been one of the largest deals in crypto history.

Galaxy Digital said in a release it is terminating the deal due to the crypto custody firm’s inability to hand over audited financial statements that were due by the end of last month.

“Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner. We are committed to continuing our process to list in the U.S. and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions,” said Mike Novogratz, CEO and founder of Galaxy.

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The M&A deal would have been one of the largest the sector has ever seen. According to Crunchbase data, the largest crypto deal is e-commerce startup Bolt buying crypto and payment infrastructure company Wyre for $1.5 billion in April.

Different market

The proposed Digital Galaxy/BitGo deal was announced last May when the crypto market was still gathering steam. This year, however, has proven to be a much different story for digital assets, with Bitcoin alone being down nearly 65% from its November highs.

However, Bitcoin has shown some signs of a bounceback as the markets try to steady and inflation slows. On Monday, the cryptocurrency topped $25,000 for the first time since June. However, it did drop back down closer to $24,100 as the day continued.

Nevertheless, in the last month alone Bitcoin has rallied slightly, gaining about 16% after being crushed early in the year and leading to fears of a crypto winter.