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Davis Polk Assists Galaxy Digital on $1.2 Billion BitGo Deal

May 6, 2021, 10:56 AM

Davis Polk & Wardwell and several law firms are advising on a $1.2 billion deal by Galaxy Digital Holdings Ltd., a cryptocurrency-focused financial services firm, to acquire Silicon Valley-based crypto custody specialist BitGo Inc.

Galaxy Digital said the acquisition will make it the first full-service financial platform for digital assets, adding new business lines, including a regulated client custody solution. It expands its global reach with a San Francisco office and global offices, and it adds over 400 new clients.

“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 Mike Novogratz, New York-based CEO and founder of Galaxy Digital.

Galaxy Digital is also getting deal advice from Toronto-based Blake, Cassels & Graydon and Cayman Islands-based Maples and Calder LLP, while Sheppard, Mullin, Richter & Hampton is advising BitGo, according to the statement.

Although the deal is expected to close in the fourth quarter, it is conditioned on completion of a planned reorganization of Galaxy Digital, according to a statement.

Davis Polk is advising Galaxy Digital on the company’s proposed reorganization and domestication from the Cayman Islands to Delaware., in which it would be replaced by a new holding company, Galaxy Digital Pubco Inc., which will apply to list on the Nasdaq exchange.

Jenner & Block and Toronto-based Fasken Martineau DuMoulin LLP are advising Galaxy Digital’s special committee on the reorganization, the statement said.

Davis Polk said that to commemorate the signing of the $1.2 billion transaction, it will issue its “first ever non-fungible token deal toy.”

To contact the correspondent on this story: Rick Mitchell in Paris at rmitchell@correspondent.bloomberglaw.com
To contact the editor responsible for this story: Chris Opfer at copfer@bloomberglaw.com; John Hughes in Washington at jhughes@bloombergindustry.com

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