New deal, old headache
Galaxy Digital is back in court over the wreckage of its failed $1.2 billion bid for BitGo, and the price tag is getting real. Mike Novogratz told a Delaware judge the deal died because regulators changed the rules midstream, while BitGo says Galaxy didn’t use reasonable efforts to get it done.
So who broke up with who?
This was supposed to be a marquee crypto marriage: Galaxy buys BitGo, the combined company heads for Nasdaq, and everyone pretends the 2022 froth never ended. Instead, the deal collapsed over audited financials and SEC requirements, and now BitGo wants at least $100 million — maybe more — for the trouble.
Galaxy’s defense is basically, “the goalposts moved.” BitGo’s response is, “we held up our end.” That’s the kind of courtroom popcorn fight that can end with a check, an embarrassment, or both.
Why investors should care
Even if the market has largely moved on from peak crypto deal fever, this case still matters for GLXY holders:
- a big adverse ruling could ding cash and sentiment
- it keeps Galaxy’s M&A credibility in the spotlight
- it adds another layer to the company’s regulatory and reputation baggage
Big picture
The crypto boom was all moonshots and handshake optimism. Now it’s arbitration, affidavits, and “reasonable efforts.” Very on-brand for the industry, honestly.