Galaxy Digital terminates $1.2B BitGo acquisition
BitGo seeks $100M in damages
Crypto investment firm Galaxy Digital has cancelled its $1.2 billion acquisition agreement with digital asset custodian BitGo.
Galaxy terminated the deal after the San Francisco-based startup missed a July 31st deadline to deliver audited financial statements for 2021 that comply with the requirements of the agreement, according to a Monday press release. Galaxy will not have to pay a termination fee.
Mike Novogratz, CEO, and Founder of Galaxy stated, “Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner. We are committed to continuing our process to list in the U.S. and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions,”
BitGo has disputed Galaxy Digital’s claim, saying the expiry on the deal was until December 31st “at the earliest” and that it failed to pay out a $100 million reverse break fee "promised back in March 2022 in order to induce BitGo to extend the merger agreement."
“The attempt by Mike Novogratz and Galaxy Digital to blame the termination on BitGo is absurd,” said R. Brian Timmons, a partner with Quinn Emanuel, the law firm BitGo has hired.
Timmons pointed to Galaxy's $554 million loss during Q2, in addition to its stock performing poorly and the company being distracted by the Terra Luna crash.
"Either Galaxy owes BitGo a $100 million termination fee as promised or it has been acting in bad faith and faces damages of that much or more,” he added.
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