When the stars don’t alignDigital asset-focused financial brand Galaxy Digital has pulled the plug on what would’ve been crypto’s biggest ever deal, and this looks to be only the start of the drama.
- Galaxy Digital has backed out of its $1.2bn BitGo acquisition agreement. The high-profile deal to buy BitGo was announced last year at the height of the 2021 bull market and marked the first ever $1bn deal for the crypto industry – or would’ve anyway – but appaz BitGo failed to hand over audited financial statements for 2021.
- BitGo has called the move “absurd” and basically said see ya in court. It’s understandable that the company isn’t best pleased, and has promised to hold Galaxy “legally accountable” while suing for the $100m termination fee, but investors don’t seem too disappointed with Galaxy’s Toronto-listed shares jumping on the news.
- It comes hot on the heels of a dismal Q2 report from Galaxy, which saw its net loss triple in the period to $554.7m amid this year’s market downturn. The brand still has big plans to take its stock public on the NYSE – it’s currently only public in Canada – so perhaps they’ve realized they might need that $1.2bn more than BitGo.
RISE / Wikimedia Commons
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