Billionaire Mike Novogratz’s crypto investment firm announced the closing of the deal, which will happen in stocks and cash.

The investment firm specializing in cryptocurrencies and led by billionaire Michael Novogratz, Galaxy Digital, is about to close the largest deal in the history of the crypto space.

Galaxy Digital announced an agreement to acquire BitGo, the specialized firm in the custody of digital assets regulated by the United States, for a sum of USD 1.2 billion. the acquisition will happen in stocks and cash, which makes this purchase the largest acquisition of a company offering Bitcoin services.

Last month, Coindesk also reported that the two companies were talking about purchasing BitGo. The acquisition will now turn Galaxy Digital into a complete platform, offering a diverse set of services and products in the crypto industry.

Galaxy Digital Purchases BitGo

This deal demands that BitGo shareholders will receive 33.8 million Galaxy Digital common shares and $ 265 million in cash, giving the deal a transaction value of approximately $ 1.2 billion. , based on the closing price of Galaxy Digital shares as of May 4.

Mike Novogratz, CEO and founder of Galaxy Digital explained that The BitGo purchase puts Galaxy Digital as a top shop for institutions and accelerates Galaxy Digital’s mission to bring institutional value to digital assets and Blockchain technology.

Novogratz also noted that the acquisition will “unlock unique value” for Galaxy customers, driving long-term business growth. Novogratz also gave a warm salute to BitGo CEO and founder Mike Belshe, who will now play the role of Galaxy Digital’s Deputy CEO as well as a member of the company’s board.

The company also says it will gain around 400 new global net clients from BitGo and use their balance to fund the cash consideration, part of which will be deferred for up to 12 months after closing. “Joining Galaxy Digital represents an exciting new chapter for our business as our current customers gain access to a broad set of financial solutions,” added Belshe.

Agreements and Acquisitions in the Crypto Space

The deal is the latest sign that mergers and acquisitions in the crypto industry are a rising trend within the space. At the beginning of March; the payment giant Paypal announced the purchase of Curv, an Israeli firm specializing in cryptocurrency custody.

The agreement represented the first purchase of a crypto company by Paypal, confirming its plans to accelerate its services regarding digital currencies.

Also, before the Curv acquisition, rumors indicated that Paypal was in talks to buy BitGo, the payments giant would have offered an estimated sum between USD 200 and $ 750 for the signature.

The new deal between Galaxy and BitGo is expected to close in the fourth quarter of this year, subject to regulatory scrutiny and approval by a vote of Galaxy shareholders.

Notably, BitGo shareholders will now own approximately 10% of the combined company. The company said in this regard that “it will undergo a process of domestication” with the sole intention to go public later this year.

By: Jenson Nuñez

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