During Galaxy Digital’s earnings call on Thursday, CEO Mike Novogratz, the head of crypto merchant bank Galaxy Digital (BRPHF), outlined amendments to the terms of the company’s deal to buy crypto custody expert BitGo. Galaxy is waiting for clearance from the Securities and Exchange Commission (SEC) on its intention to restructure as a Delaware corporation and subsequently list its shares on the Nasdaq exchange.
BitGo shareholders will now receive 44.8 million newly issued Galaxy shares, up from 33.8 million previously, giving BitGo stockholders a 12 percent ownership stake in the combined company, up from 10% previously. The cash consideration of $265 million remains unchanged. Because Galaxy’s share price has fallen since then, the total deal value remains in the $1.2 billion range disclosed in May 2021.
The deal will close as soon as the Securities and Exchange Commission accepts Galaxy’s intention to domesticate as a Delaware corporation, which the company expects to happen later this year. It further stated that once the SEC review is completed, it intends to list on the Nasdaq.
On the company’s earnings call Thursday morning, CEO Mike Novogratz noted on the company’s earnings call that Galaxy amended the contract parameters to reflect BitGo’s growth, including the hiring of over 150 individuals since the original agreement in May. “It’s a bigger and better firm,” he added, adding that Galaxy will continue to work on BitGo integration. In terms of operations, Galaxy reported $521.3 million in net comprehensive income in the fourth quarter, up from $335.6 million in the previous year. The corporation credited its trading and major investment businesses with significant contributions.
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