Galaxy Digital Holdings Ltd. , a financial services and investment manager in the digital asset, cryptocurrency and blockchain technology sectors, said Wednesday it has agreed to acquire BitGo, an independent digital assets infrastructure provider, for $1.2 billion in stock and cash. Under the terms of the deal, BitGo shareholders will receive 33.8 million newly issued shares of Galaxy Digital plus $265 million in cash. Galaxy will use its balance sheet to fund the cash portion of the payment price, a large part of which will be deferred up to 12 months after the deal closes. At close, Galaxy will issue incremental shares to BitGo’s shareholders in exchange for net digital assets. BitGo shareholders will own 10% of the pro forma new company, and Galaxy will retain most of BitGo’s employees and management team. The deal is expected to close in the fourth quarter. “The acquisition will position Galaxy Digital as a leading global full-service platform for institutions seeking access to the crypto economy, offering an unparalleled breadth of industry-leading products and services at scale,” the company said in a statement. BitGo was founded in 2013 and has developed custody and wallet infrastructure products, financial products including prime lending, trading and portfolio management and tax services. It has more than $40 billion of assets under custody, services more than 150 exchanges and more than 400 institutional clients. It processes more than 30 billion monthly transactions and supports the custody of more than 400 coins and tokens.

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