The cryptocurrency-focused financial services company led by Michael Novogratz – Galaxy Digital Holdings – announced it will acquire the digital asset custodian BitGo between now and October 2022. Initially, the move was planned for the first quarter of the year.

Delaying the Acquisition

In May last year, Galaxy Digital agreed to purchase BitGo for approximately $1.2 billion. According to the agreement, the latter’s shareholders were supposed to receive 33.8 million on newly issued shares of Galaxy Digital common stocks and $265 million in cash. The deal was meant to be completed by the end of March 2022.

In a recent announcement, though, Novogratz’s company revealed that the acquisition will occur between Q2 and Q4 of 2022, depending on the ongoing SEC review policies:

“The acquisition is expected to close immediately following the domestication of Galaxy Digital as a Delaware corporation, subject to approval by the company’s shareholders as well as certain other acquisition-related closing conditions and regulatory approvals. The company anticipates the domestication will become effective between Q2 and Q4 of 2022, subject to the ongoing SEC review process.”

Additionally, BitGo shareholders will get 44.8 million (instead of the aforementioned 33.8 million) newly issued shares of Galaxy Digital common stocks due to the decrease in GLXY’s price.

In case the deal does not get completed by the end of 2022, Novogratz’s organization will have to pay a reverse termination fee of $100 million to BitGo.

Mike Novogratz’s Crypto Stance

When talking about Galaxy Digital, it is worth mentioning its CEO – Michael Novogratz – who is among the biggest proponents of the cryptocurrency industry. The 57-year-old investor often displays his positive viewpoint on the matter as his favorite assets are Bitcoin and Ethereum.

Novogratz was not concerned about the future of the asset class despite the crash of the crypto market last summer. Back then, he described bitcoin as a better version of gold. He added that cryptocurrencies could make the future financial network “more transparent and more fair.”

Shortly after, he reiterated his support for BTC, seeing it as the digital version of gold for the next 3,000 years. However, Novogratz suggested that Ethereum might surpass it and become the “biggest cryptocurrency one day.”

His latest comments on the sector came last month when President Joe Biden signed the executive order on digital assets. Novogratz opined that the endeavor was a “welcomed engagement from the administration,” which could create an opportunity for the USA to become the global leader in the crypto universe.

Subsequently, he predicted that blockchain technology could transform the world.

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