Galaxy Digital abandons BitGo acquisition; custodian threatens to sue
The cryptocurrency merchant bank Galaxy Digital, led by Mike Novogratz, abandoned the acquisition of custody provider BitGo. This was говорится in a press release.
According to the statement, the agreement envisaged the custodian’s delivery of its 2021 financial statements. By the deadline of July 31, 2022, the firm had not provided the necessary documents.
«We intend to continue our US listing process and [going forward] to provide clients with the best solution,» the bank said.
Representatives of Galaxy Digital added that no liquidated damages were provided in connection with the termination of the agreement.
BitGo said it intends to sue Galaxy Digital for abandoning the deal, CoinDesk reports, citing the company. Quinn Emanuel partner R. Bryan Timmins called the “attempt to place liability” on the custodian absurd.
«Either Galaxy owes BitGo a termination fee of $100 million, as promised, or it acted in bad faith and faces damages equal to or greater than the stated amount,» he said.
In April 2021, media reported talks between Mike Novogratz’s bank and BitGo about a takeover. Later the parties confirmed the information and disclosed the deal value — around $1.2 billion in stock and cash.
As reported, in the second quarter of 2022 Galaxy Digital amounted to $554.7 million in combined losses. The company reaffirmed its commitment to its restructuring plans with incorporation in Delaware (USA) and the intention to list shares on Nasdaq.
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