Galaxy CEO Novogratz Testifies in Court Over Failed $1.2B BitGo Merger, Faces $100M Fee Claim
GLXY sits 81% above its 52-week low of $16.43.
Summary
Galaxy Digital CEO Mike Novogratz testified in court regarding the company's failed $1.2 billion merger with BitGo, which was called off in 2022. BitGo is seeking a $100 million termination fee, alleging Galaxy breached the agreement. Novogratz claimed regulatory hurdles and BitGo's failure to provide timely financial information led to the deal's collapse. A potential $100 million liability is material for Galaxy Digital, representing nearly 1% of its market capitalization. The trial is expected to conclude this week, with a judge's decision on the fee to follow.
At the time of this announcement, GLXY was trading at $29.77 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $11.5B. The 52-week trading range was $16.43 to $45.92. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Cointelegraph.