Galaxy Digital to Buy BitGo for About $1.2 Billion in Stock, Cash

Galaxy Digital, the cryptocurrency-focused financial services firm run by Michael Novogratz, said it has agreed to buy BitGo, the U.S.-regulated crypto custody specialist, for $1.2 billion in stock and cash.

• Under the terms of the deal, BitGo shareholders will get 33.8 million of newly issued shares of Galaxy Digital common stock and about $265 million in cash, giving it a transaction value of about $1.2 billion based on Galaxy Digital's closing share price on May 4.
• "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," said Novogratz, Galaxy's CEO and founder. 
• Galaxy also said it will "undergo a domestication process" on an intended path to U.S. listing later this year.
• Galaxy, which said it will gain about 400 global net new clients,  will use its balance sheet to fund the cash consideration, part of which will be deferred up to 12 months post-close, the company said.

This story is developing and will be updated.