Galaxy Digital pulled out of the $1.2B merger because it could not afford it, says BitGo
bit go Said Galaxy Digital’s decision to withdraw from the merger agreement has nothing to do with the company’s financial statements, but it suffered losses of more than $661 million in the first half of 2022, prompting Galaxy to fund the deal. It has something to do with being unable to source.
August 15th, Galaxy Digital announced BitGo has said it will terminate its merger agreement with BitGo, alleging it failed to file audited financial statements in accordance with approved accounting standards.
BitGo movement submitted said on September 15 that it has complied with the merger agreement and has filed comprehensive financial statements prepared using generally accepted accounting principles (GAAS).
Added BitGo:
“BitGo timely filed all audited financial statements under the merger agreement. Financial statements with a clean opinion audited by a highly regarded independent accounting firm.”
According to BitGo, Galaxy Digital’s claim to a public company standard was “insignificant” because GAAS is the appropriate standard for private companies. It also added that Galaxy Digital had previously accepted financial statements, which he had filed with the SEC at the time the merger transaction commenced.
BitGo said the blame game played by Galaxy was a subtle way to make up for the lack of funds to complete the $1.2 billion merger deal. Galaxy Digital reportedly lost more than $111 million in the first quarter of 2022 and another $550 million in the second quarter.
In a recent development, BitGo asked the court to hold Galaxy accountable for knowingly fabricating the story. BitGo wants him to pay $100 million to cover the damages caused by the termination.
Galaxy Digital avoids $100 million in fees
Back in March 2022, Galaxy Digital reportedly BitGo has pledged to pay a $100 million termination fee to extend the merger agreement.
BitGo was forced to extend, while Galaxy Digital terminated the deal in August. Galaxy Digital is allegedly avoiding fees by blaming BitGo for its termination.
