The largest deal in Cryptocurrency history is no more.
Galaxy Digital issued a press release today stating that the $1.2 billion acquisition of BitGo has been terminated. Galaxy Digital is blaming the termination on BitGo's failure to deliver audited 2021 financial statements. Based off this failure to produce the financial statements, Galaxy Digital is reserving their right to terminate the merger agreement.
The $1.2 billion merger between Galaxy Digital and BitGo was originally agreed to in May of 2021. This shocking news comes after Galaxy Digital reported quarterly losses of $554.7 million.
"Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner. We are committed to continuing our process to list in the U.S. and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions,"
- Michael Novogratz, Founder and CEO of Galaxy Digital
Despite the troubling string of news, Novogratz remains optimistic about the company's future. Within that same press release, he states that the company will be reorganizing the Delaware. Once the SEC completes their review, the company intends to list on the Nasdaq stock exchange.
SARCASM - I don't know about you guys, but I fully intend on saving up my dollars to invest in Galaxy Digital stock. I have an extreme amount of confidence in their Founder and CEO, Michael Novogratz, the man who famously got a "Luna" tattoo.
“We remain in strong position to weather prolonged volatility, and to take advantage of strategic opportunities to grow Galaxy in a sustainable manner. Prudent risk management, along with our commitment to exacting credit standards, allowed us to maintain over $1.5 billion in liquidity, including over $1.0 billion in cash.”
- Michael Novogratz, Founder and CEO of Galaxy Digital
BitGo states they plan to sue for more than $100 million in damages. This story is just beginning and I imagine this could turn into a lengthy court case; especially with this potential merger being the first $1 billion deal in the cryptocurrency industry. With this deal falling through, it is a slight knock on the overall credibility of the crypto sector.
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