San Francisco,  Financial services and investment management firm Galaxy Digital on Monday announced it has terminated the $1.2 billion acquisition of digital asset trust company BitGo as it failed to provide audited financial statements for the year 2021.

The proposed acquisition was the global crypto industry's first $1 billion deal.

"Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner," said Mike Novogratz, CEO and Founder of Galaxy.

"We are committed to continuing our process to list in the US and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions," he added.

No termination fee is payable in connection with the decision.

Galaxy Digital said it intends to complete the proposed reorganisation and domestication to become a Delaware-based company, and subsequently list on the Nasdaq, upon completion of the SEC's review and subject to stock exchange approval of such listing.

"Galaxy remains focused on executing its business objectives and driving long-term performance for investors. That includes the planned rollout of Galaxy One Prime," it said.

Galaxy Digital reported a loss of $554.7 million in the second quarter, up from a loss of $183 million a year ago period, Amod the global crypto meltdown.

BitGo company offers a multi-signature bitcoin wallet service, where keys are divided among a number of owners to manage risk.