Mike Novogratz’s Galaxy Digital Holdings has won the dismissal of a BitGo lawsuit over its abandoned $1.2 billion acquisition of the crypto custodian.
Galaxy had a “clean termination right” to end its acquisition of BitGo after the firm failed to deliver audited 2021 financial statements required by the merger agreement, according to a filing in the Delaware Chancery Court dated Friday.
The crypto financial services firm announced its plan to buy BitGo in a cash and stock transaction valued at $1.2 billion in 2021, amid a digital asset bull market. It was one of the biggest acquisitions in the crypto space at the time.
A sector downturn then led the two firms to renegotiate terms as Galaxy’s shares slumped. Last August, Galaxy said it’s ending the acquisition, citing the crypto custody firm’s failure to deliver audited financial statements for 2021 by a deadline.
Galaxy is “pleased” with the court’s decision, according to a company spokesperson. BitGo didn’t immediately respond to a request for comment.
BitGo was founded in 2013 by Mike Belshe, an engineer who’s previously worked on Google’s Chrome. Last week, BitGo signed a non-binding term sheet to acquire the parent company of Prime Trust, the crypto custodian for the beleaguered Binance.US trading platform.
Read More: BitGo Agrees to Purchase Rival Crypto Custodian Prime Trust
