BitGo Aborts Prime Trust Acquisition

BitGo Terminates Acquisition of Prime Trust

BitGo, a digital asset trust and security company, has ended its proposed acquisition of Prime Trust, a Nevada-based financial institution.

The proposed acquisition was announced in December 2019, and was intended to help BitGo expand its services to institutional investors in the digital asset space. However, the two companies were unable to reach an agreement on the terms of the deal, leading to its termination.

BitGo CEO Mike Belshe said in a statement: “We have decided to end our acquisition negotiations with Prime Trust. We were unable to reach an agreement that was beneficial to both companies. We are disappointed that we could not reach an agreement, but we remain committed to providing our customers with the best digital asset security and custody solutions.”

Prime Trust CEO Scott Purcell also expressed his disappointment in the deal’s termination, saying: “We were excited about the potential of a partnership with BitGo, but unfortunately, we could not reach an agreement that was beneficial to both companies. We remain committed to providing our customers with the highest quality financial services.”

Despite the failed acquisition, BitGo remains committed to its mission of providing secure and compliant digital asset solutions for institutional investors. The company recently announced a partnership with the Gemini cryptocurrency exchange, allowing institutional investors to access Gemini’s digital asset services through BitGo’s platform.

Reasons for Termination

BitGo and Prime Trust have mutually agreed to terminate the acquisition due to the inability to reach a definitive agreement on the terms of the transaction. This decision was made after both companies conducted due diligence and discussed the potential implications of the acquisition.

The two companies had different opinions on the terms of the transaction, such as the amount of equity to be exchanged, the structure of the transaction, and the timing of the closing. As a result, they were unable to reach a consensus and mutually decided to terminate the acquisition.

The two companies have stated that they remain committed to working together in the future and will continue to explore ways to collaborate and create value for their respective customers.

Impact of Termination

The termination of the acquisition will not have any impact on the operations of either company. BitGo will continue to focus on providing secure digital asset storage and security services, while Prime Trust will continue to provide financial services to its customers.