Galaxy Digital is terminating its billion dollar deal to purchase BitGo. The company claims that BitGo did not provide certified 2021 financial statements by July 31 and would not pay a resolution fee. BitGo, however, says it will sue for the $ 100 million resolution fee.
“Galaxy remains positioned for success and to leverage strategic opportunities to grow sustainably. We are committed to continuing our listing process in the United States and providing our clients with an excellent solution that truly makes Galaxy a one-stop shop for institutions.” said Mike Novogratz, CEO and founder of Galaxy.
Full transcript below:
Firstly, it was Elon Musk who pulled out of the Twitter deal … now we are seeing the cryptocurrency deals collapse as well … Galaxy Digital announced it was terminating its deal with BitGo, which was worth around 1.2 billions of dollars.
Galaxy Digital is the cryptocurrency investment firm run by Mike Novogratz, you know the guy who famously got himself a tattoo to honor the Luna token before his twin token, Terra, broke away from the dollar and crashed. But we don’t have to get into the old wounds … Galaxy said the deal fell apart after BitGo failed to deliver certified 2021 financial statements by July 31 under the agreements.
The acquisition, if successful, would have been one of the largest within the crypto space. Now BitGo is looking for the $ 100 million resolution fee from Galaxy and claims to have honored its obligations up to this point … sounds very similar to Elon’s fiasco on Twitter … what do you think?
I’m Ross Mac and that was the Crypto Minute on TheStreet.