Believes Galaxy’s Actions Are Improper and Plans to Hold Galaxy Legally Accountable and to Seek Damages of $100 Million+
PALO ALTO, Calif.--(BUSINESS WIRE)--BitGo, the market leader in digital asset financial services, today said that it intends to hold Galaxy Digital legally responsible for its improper decision to terminate the merger agreement with BitGo, which was not scheduled to expire until December 31, 2022, at the earliest and to not pay the $100 million reverse break fee it had promised back in March 2022 in order to induce BitGo to extend the merger agreement. Galaxy informed BitGo of both decisions this past Friday. BitGo said it has hired litigation powerhouse Quinn Emanuel to take appropriate legal action.
“The attempt by Mike Novogratz and Galaxy Digital to blame the termination on BitGo is absurd,” said R. Brian Timmons, a partner with Quinn Emanuel. “BitGo has honored its obligations thus far, including the delivery of its audited financials. It is public knowledge that Galaxy reported a $550 million loss this past quarter, that its stock is performing poorly, and that both Galaxy and Mr. Novogratz have been distracted by the Luna fiasco. Either Galaxy owes BitGo a $100 million termination fee as promised or it has been acting in bad faith and faces damages of that much or more.”
BitGo’s founder and CEO Mike Belshe noted that “BitGo’s business has continued to grow and its operational and strategic outlook remain strong. BitGo ended 2021 with over $64B in assets in custody. Client growth was strong and BitGo grew by over 3 times year over year and client growth continues into 2022, which underscores the need for BitGo to remain focused on our mission. We have an expanding pipeline of product launches and we are dedicating even more resources to building institutional-grade products and services for our clients and the industry. We are now turning 100% of our focus to these exciting initiatives for the benefit of our clients, shareholders and employees. I have never been more bullish about our future.”
BitGo is the first digital asset company that has been focused exclusively on serving institutional clients since 2013. BitGo provides institutional investors with custody, liquidity, and security solutions. Active in both centralized and decentralized finance, BitGo offers market leading trading, lending, and borrowing services through its prime brokerage services and acts as the custodian for WBTC, the leading global stablecoin for Bitcoin.
In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets. In 2020, BitGo launched BitGo Prime, Portfolio and Tax, providing clients with a full-stack solution for digital assets. In 2022, BitGo launched institutional-grade DeFi, NFT and web3 services. BitGo processes approximately 20% of all global Bitcoin transactions, and supports over 500 coins and tokens. BitGo’s customer base includes the world’s largest cryptocurrency exchanges and institutional investors and spans more than 50 countries. For more information, please visit www.bitgo.com and or contact press@BitGo.com.