BitGo says it will seek over $100 million after Galaxy moves to end acquisition

Quick Take

  • Galaxy Digital announced earlier Monday that it would not acquire crypto firm BitGo as previously planned, citing the “failure to deliver, by July 31, 2022, audited financial statements for 2021 that comply with the requirements of our agreement.”
  • In a later statement, BitGo called Galaxy’s decision “improper” and said it would pursue legal action and damages in excess of $100 million.

BitGo has hit back against Galaxy Digital, which announced earlier Monday the termination of its plan to acquire the crypto custody firm.

In a statement shared with The Block, BitGo said it "intends to take legal action against Galaxy Digital for its improper decision to terminate the merger agreement with BitGo, which was not scheduled to expire until December 31, 2022, at the earliest and to not pay the $100 million reverse break fee it had promised back in March 2022 in order to induce BitGo to extend the merger agreement."

BitGo has retained the law firm Quinn Emanuel, according to its press statement. “The attempt by Mike Novogratz and Galaxy Digital to blame the termination on BitGo is absurd,” partner R. Brian Timmons said in a statement.

BitGo said it would either seek the $100 million fee or more than that amount in legal damages, per the statement.

As previously reported, Galaxy announced the termination due to a "failure to deliver, by July 31, 2022, audited financial statements for 2021 that comply with the requirements of our agreement."

"No termination fee is payable in connection with the termination," the firm had added.

Last year, Galaxy Digital announced its planned acquisition of BitGo for $1.2 billion. However, The Block reported this past March that the terms of the deal were being renegotiated. 

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