Galaxy says Delaware court found it had 'valid basis' to terminate BitGo deal

Deals • June 12, 2023, 9:29AM EDT

UPDATED: June 12, 2023, 3:00PM EDT

Quick Take

Galaxy Digital said Monday that a Delaware court found it had a ‘valid basis’ to terminate a planned acquisition of crypto custodian BitGo.

Galaxy Digital said Monday that a Delaware court found it had a "valid basis" to terminate a planned acquisition of crypto custodian BitGo after the company failed to deliver audited financial statements required by the merger agreement.

"We’re pleased with the court’s decision to dismiss BitGo’s claims," Galaxy said in an emailed statement.

BitGo said last year that it would seek over $100 million in compensation for the termination of the deal.

"BitGo plans to appeal the Court’s decision, and continues to believe that Galaxy wrongfully terminated the agreement," the company said in an emailed statement to The Block.

(Updates with comment from BitGo in fourth paragraph.)

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MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.