Delaware Supreme Court Rules in Favor of BitGo Over Galaxy Digital Lawsuit
The Delaware Supreme Court has made a ruling in favor of BitGo, overturning a decision made by a lower court against Galaxy Digital. The lawsuit between the two parties originated from a failed acquisition deal. In a filing on May 22, the Delaware Supreme Court highlighted that the language used in the $1.2 billion merger agreement between BitGo and Galaxy Digital was deemed “ambiguous.” This ambiguity led the court to reverse the initial decision made by the Delaware Chancery Court, allowing for the consideration of additional evidence to resolve the ambiguity.
BitGo’s Legal Action Against Galaxy Digital Resumes
Following a successful appeal submitted on February 7, BitGo now has the opportunity to resume legal action against Galaxy Digital. The initial lawsuit, filed in August 2022, accused Galaxy of an “intentional breach” of the acquisition agreement. Galaxy had terminated the deal, citing BitGo’s failure to provide audited financial statements from 2021 as grounds for termination.
- BitGo accused Galaxy of an “intentional breach” of the acquisition agreement.
- Galaxy terminated the deal due to BitGo’s failure to provide audited financial statements from 2021.
Galaxy’s Response and Future Plans
In response to the Delaware Supreme Court’s decision, a spokesperson for Galaxy expressed confidence in their case and declared their intention to vigorously defend the matter. Galaxy, under the leadership of Mike Novogratz, had announced its intent to acquire BitGo as part of a public offering in the United States back in May 2021.
- Galaxy expressed confidence in the merits of their case and their intention to vigorously defend themselves.
- Mike Novogratz led Galaxy’s acquisition plan for BitGo in 2021.
Galaxy Digital’s Continued Expansion
Despite the legal dispute with BitGo, Galaxy Digital has continued to expand its operations. In 2023, Galaxy Asset Management was appointed by the FTX estate to handle the selling, staking, and hedging of its crypto assets. Galaxy Asset Management, a division of Galaxy Digital Holdings, encompasses Global Markets and Digital Infrastructure Solutions, with Steve Kurz leading the division as the Global Head of GAM.
- In 2023, Galaxy Asset Management was chosen to assist the FTX estate with its crypto assets.
- Steve Kurz leads Galaxy Asset Management as the Global Head of GAM.
Galaxy Digital’s Stock Performance and Future Expectations
Despite a 4% decline in Galaxy Digital stock to $12.80 in after-hours trading, the shares have seen a 23.5% increase since the year began. This growth followed the approval of spot Bitcoin ETFs in mid-January, although the stock remains significantly lower than its previous all-time high of $40 during the crypto market peak in November 2021. Steve Kurz from Galaxy Asset Management anticipates increased involvement in spot Bitcoin ETFs by top wirehouses in the coming year.
- Galaxy Digital stock saw a 23.5% increase since the beginning of the year.
- Steve Kurz predicts increased involvement in spot Bitcoin ETFs by major wirehouses.
Hot Take: Closing Thoughts on the BitGo vs. Galaxy Digital Legal Battle
In conclusion, the ruling in favor of BitGo by the Delaware Supreme Court marks a significant development in the ongoing legal dispute with Galaxy Digital. With BitGo now able to pursue legal action against Galaxy, the case is set to proceed in the Chancery Court. While Galaxy remains steadfast in defending its position, the outcome of this legal battle could have lasting implications for both parties involved.
Sources:
– Delaware Supreme Court Filing
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