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Delaware Supreme Court Rules in Favor of BitGo
The Delaware Supreme Court has ruled in favor of BitGo by overturning a lower court’s dismissal of the company’s $100 million lawsuit against Galaxy Digital. The lawsuit stems from a failed acquisition between the two entities.
Background of the Lawsuit
In its filing on May 22, the Delaware Supreme Court stated that the language used in the BitGo-Galaxy Digital $1.2 billion merger agreement was “ambiguous.” This ambiguity led the court to reverse the decision made by the Delaware Chancery Court and open the opportunity for the consideration of additional evidence to resolve the ambiguity.
BitGo Can Pursue Legal Action Against Galaxy
The successful appeal, originally submitted on February 7, now gives BitGo another chance to pursue legal action against Galaxy Digital. In the initial lawsuit filed in August 2022, BitGo accused Galaxy of an “intentional breach” of the acquisition agreement.
Reaction to the Court’s Decision
“We believe justice prevailed on appeal, and we are delighted to move forward with this case in the Chancery Court,” said R. Brian Timmons, a partner at law firm Quinn Emanuel representing BitGo.
Galaxy Digital’s Response
In response to the recent decision by the Delaware Supreme Court, a spokesperson for Galaxy stated that the company would “continue to vigorously defend ourselves” and expressed confidence in the merits of their case.
Galaxy’s Business Expansion
In 2023, Galaxy Asset Management was appointed by the FTX estate to assist with the selling, staking, and hedging of its crypto holdings. Galaxy Asset Management serves as the institutional investment division of Galaxy Digital Holdings, which encompasses Global Markets and Digital Infrastructure Solutions.
Leadership and Stock Performance
Steve Kurz leads the division as the Global Head of GAM, which was established in 2018. Despite a 4% decline in Galaxy Digital stock (GLXY) to $12.80 in after-hours trading, the shares have gained 23.5% since the beginning of the year.
Market Trends and Expectations
Galaxy Asset Management’s global head, Steve Kurz, expects top wirehouses to increase their involvement in spot Bitcoin ETFs within the next year. He mentioned during an event that companies offering spot Bitcoin ETFs have been receiving queries from financial advisers, indicating a growing interest in this market.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
