Galaxy Digital drops BitGo acquisition worth $1.2 billion and now faces a lawsuit claiming a $100 million termination fee. BitGo claims Galaxy Digital promised to pay up if the deal didn’t go through. Now, the lawsuit brings the question of whether the two companies agreed on a termination fee for the acquisition and whose fault it was that the acquisition didn’t happen. BitGo has waited long enough for the $100 million to be paid by Galaxy Digital as they were supposed to clear it by March 2022.
BitGo’s claims about the acquisition
BitGo was supposed to be acquired by Galaxy Digital, but the acquisition was terminated because BitGo didn’t share audited financial statements for 2021 by July 31, 2022. This claim was made by Galaxy Digital, and they said it was also part of their acquisition agreement. Galaxy’s wanted to acquire BitGo because of their plans to go public in the US. However, the deal got delayed and was not completed in Q1 2022.
After this, when BitGo was unable to produce audited financial reports for the year 2021, the deal was terminated. In fact, a spokesperson from Galaxy Digital said that the claims made by BitGo lack merit, and they would defend themselves.
Considering that BitGo is doing really great as a digital custody company, it is unclear why Galaxy Digital put off the deal. BitGo also had $64 billion in assets under management in 2021 end, and this number only continues to grow.
More about BitGo
BitGo believes in the future of the financial system that will be fueled by digital assets. It aspires to bring products and services that users can rely on. The technology foundation upon which BitGo’s solution is based is the best in the market, enabling them to provide customers with an integrated solution for digital assets that reduces risk and maximizes capital efficiency.
BitGo’s customers range from institutional clients to high-net-worth investors and leveraged traders who want the greatest standards of security, technology, and compliance. As a trained, regulated custodian, BitGo can offer the genuine security that fiduciaries need when dealing with digital assets. In addition to collaborating with the most reputable companies in the sector and providing customers with the best comprehensive insurance currently on the market, it supplies standards like the CryptoCurrency Security Standard (CCSS) and SOC2.
What are your thoughts as Galaxy Digital drops the BitGo acquisition? And who do you think is in the wrong here? Let us know in the comments below. And, if you found our content informative, do share it with your friends.