Galaxy Digital Terminates $1.2 Billion Bitgo Acquisition Deal, Crypto Firm Still Plans Nasdaq Listing CryptoGlobe

Galaxy Digital Terminates $1.2 Billion Bitgo Acquisition Deal, Crypto Firm Still Plans Nasdaq Listing CryptoGlobe

Galaxy Digital Holdings and the company’s CEO and founder, Mike Novogratz, announced that the company had “exercised its right to terminate” a previously announced acquisition of Bitgo. According to Galaxy, the termination of the agreement was due to the “failure to deliver” Bitgo’s audited financial statements for 2021.

Galaxy ends deal with crypto custodian Bitgo

On Monday, Galaxy Digital Backgrounds (TSX: GLXY) explained that the company has terminated a proposed $1.2 billion stock and cash deal that would see the crypto company acquire the digital asset custody business and provider of financial services bitgo. galaxys announcement details that the scrapped deal was due to Bitgo’s “failure to deliver” specific financial documents.

“[Galaxy] exercised its right to terminate its previously announced acquisition agreement with Bitgo following Bitgo’s failure to provide, by July 31, 2022, audited financial statements for 2021 that meet the requirements of our agreement,” detailed the crypto company. “No termination indemnity is due in connection with the termination.”

The news follows that of Galaxy exposure to Terra blockchain explosion and company founder Mike Novogratz addressing the LUNA topic in mid-May. The letter Novogratz wrote explained that “there is no good news in what has happened in the markets or in the Terra ecosystem,” but reminded investors of the fundamentals of investing, such as profit taking along the way and risk management. Novogratz stressed at the time that Galaxy Digital sticks to the fundamentals when it comes to its investments in LUNA.

Mike Novogratz Says “Galaxy Remains Positioned for Success”, Company Still Plans to List on Nasdaq

During Monday’s announcement, the Galaxy CEO noted that his company was positioned for success. “Galaxy remains positioned for success and to take advantage of strategic opportunities to grow sustainably,” Novogratz said in a statement Monday. “We are committed to continuing our US enrollment process and providing our customers with a best-in-class solution that truly makes Galaxy a one-stop-shop for institutions,” Novogratz added.

Additionally, Galaxy noted that it still plans to list the company’s stock on Nasdaq following the completion of a Securities and Exchange Commission (SEC) review. “As previously announced, Galaxy intends to complete the proposed reorganization and domestication to become a Delaware-based company and then list on Nasdaq, upon completion of SEC review and subject to exchange approval of this listing,” Galaxy said.

Bitgo Responds to Statements by Galaxy Digital, Company Lawyer Says Galaxy’s Attempt to ‘Blame Bitgo’s Termination Is Nonsense’

Following Galaxy Digital’s Monday announcement that it was completing its acquisition of Bitgo, the Palo Alto, Calif.-based crypto financial services said Galaxy was “legally responsible for its poor decision to terminate the merger”. Bitgo clarifies that it has hired the Los Angeles-based litigation firm Quinn Emmanuel “to initiate the appropriate legal proceedings”.

Quinn Emanuel is one of the top-ranked white shoe law firms in the world with approximately 23 offices located in a myriad of countries. After the release of Galaxy’s press release, R. Brian Timmons, a partner of Quinn Emanuel, spoke about the issues between the two companies.

“Mike Novogratz and Galaxy Digital’s attempt to blame Bitgo for the termination is absurd,” Timmons wrote in a statement. “Bitgo has so far honored its obligations, including delivering its audited financial statements. that Galaxy and Mr. Novogratz were distracted by the Luna fiasco Either Galaxy owes Bitgo a termination fee of $100 million as promised or it acted in bad faith and faces damages of the same amount or more.

Keywords in this story

1.2 billion, BitGo, Bitgo Legal Action, crypto custodian, guardian, Delaware-based company, Galaxy, Galaxy Announcement, Galaxy CEO, Digital Galaxy, GLXY, legal action, LUNA, Mike Novogratz, Nasdaq, Listing on Nasdaq, Quinn Emmanuel, R.Brian Timmons, SECOND, SEC exam, Sotck exchange, Terra blockchain, TSX: GLXY

What do you think of Galaxy terminating its agreement with crypto custodian Bitgo? What do you think of Bitgo’s reaction to the news? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Manager at News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,700 articles for News about disruptive protocols emerging today.

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