Benzinga - Galaxy Digital Holdings (OTC: BRPHF), led by Mike Novogratz, has triumphed in a legal battle against BitGo over the latter’s $1.2 billion acquisition deal that never materialized.
Quoting a document from the Delaware Chancery Court dated June 9, Bloomberg reported that Galaxy possessed an unblemished right to call off its acquisition of BitGo due to the latter’s failure to provide the necessary audited financial statements for 2021 as stipulated in the merger agreement.
Galaxy Digital Holdings had initially publicized its intentions to acquire BitGo in 2021, during favorable market conditions for digital assets.
Valued at $1.2 billion, the acquisition, which was supposed to be a mix of cash and stock, was one of the largest in the cryptocurrency sector at that time.
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However, as Galaxy’s shares experienced a downturn, both companies entered into negotiations to reassess the terms. By August, Galaxy formally declared the termination of the acquisition, attributing it to BitGo’s inability to present audited financial statements for 2021 within the specified timeframe.
A representative from Galaxy Digital Holdings expressed the company’s satisfaction with the court’s ruling.
BitGo meanwhile stated, "BitGo plans to appeal the Court’s decision, and continues to believe that Galaxy wrongfully terminated the agreement."
BitGo, established in 2013 by Mike Belshe, a former engineer associated with Google Chrome, remains active in the industry.
Recently, it entered into a provisional agreement to acquire the parent company of Prime Trust, which is known for being the cryptocurrency custodian of the currently troubled Binance.US trading platform.
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Photo: Acumen Fund from flickr
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