BitGo sues Galaxy Digital for acquisition breach, seeks $100M in damages

September 13, 2022 Coin Telegraph

BitGo

BitGo has accused Galaxy of “improper repudiation” and “intentional breach” of the merger in a lawsuit filed with Delaware Chancery Court.

Digital asset custodian BitGo has filed a lawsuit against Mike Novogratz’s cryptocurrency investment firm Galaxy Digital for terminating the former's acquisition.

BitGo took to Twitter on Tuesday to disclose details of its lawsuit against Galaxy after the latter terminated the $1.2 billion acquisition deal with BitGo in mid-August.

Filed on Monday, the lawsuit seeks more than $100 million in damages, accusing Galaxy of “improper repudiation” and “intentional breach” of its acquisition agreement with BitGo, the firm said.

BitGo said they filed the lawsuit with Delaware Chancery Court, stressing that the court documents are expected to become public on Thursday evening. That is in “an abundance of caution” in the event Galaxy wants to “redact some of the allegations before the complaint becomes public,” BitGo noted in a tweet.

As previously reported, Galaxy terminated the BitGo acquisition on Aug. 15. The company argued that it exercised its right to drop the deal in line with the merger agreement after BitGo failed to deliver audited financial statements for 2021.

Galaxy CEO Novogratz said that it was still pursuing its path to the United States listing on Nasdaq. Galaxy also stated that they plan to vigorously defend the firm in a potential case as Galaxy believed that BitGo’s claims were “without merit.”

Both BitGo and Galaxy declined to provide additional comments regarding the lawsuit to Cointelegraph.

The news comes amid BitGo continuing to develop more products and services. The company on Tuesday announced the launch of its Wealth Management platform, aiming to allow registered investment advisors and broker-dealers to have direct access to digital assets.

Founded in 2013, BitGo is a major global digital currency firm focusing exclusively on serving institutional clients, providing custody, liquidity, and security solutions. Last year, the firm reported over $64 billion in assets under custody.

Argo Blockchain keeps cashing out BTC to pay the debt to Galaxy Digital

August 5, 2022 Coin Telegraph

Bitcoin mining

After selling 887 Bitcoin in July, Argo cut its outstanding balance under the BTC-backed loan to just $6.72 million.

Cryptocurrency mining firm Argo Blockchain continues to sell its Bitcoin (BTC) holdings to cut its debt to Michael Novogratz’s crypto investment firm Galaxy Digital.

Argo sold another 887 Bitcoin in July to reduce obligations under a BTC-backed loan agreement with Galaxy Digital, the firm announced on Friday.

With the average BTC price of $22,670, the sales totaled $20.1 million, accounting for a significant part of the maximum outstanding loan balance of $50 million in Q2 2022. As of July 31, 2022, Argo held an outstanding balance of just $6.72 million under the BTC-backed loan, the announcement notes.

The latest sale comes shortly after Argo sold another 637 BTC in June 2022 for $15.6 million. The firm reported that by the end of June 30, Argo had an outstanding balance of $22 million on the loan.

Despite actively cashing out its Bitcoin over the past few months, Argo still holds a notable stash of Bitcoin. As of July 31, 2022, Argo held a total of 1,295 BTC, with 227 of those represented by BTC equivalents.

In the latest operational update, Argo also mentioned that the company significantly increased its mining volumes in July. During the month of July, Argo mined 219 BTC or BTC equivalents, compared to 179 BTC in the previous month. Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in July amounted to $4.73 million, while revenues in June amounted to $4.35 million.

Focused on cryptocurrency mining, the Argo blockchain firm is a public company listed on Nasdaq and the London Stock Exchange. Argo is one of many crypto mining companies that opted to sell self-mined bitcoins amid the bear market of 2022, including firms like Bitfarms, Core Scientific and Riot Blockchain.

In contrast, crypto mining firms like Marathon, Hut 8 and Hive Blockchain Technologies have still preferred to stick with a long-standing HODL strategy despite extreme market conditions.

Goldman Sachs completes first OTC crypto options trade with Galaxy

March 21, 2022 Coin Telegraph

bitcoin options

Galaxy Digital previously facilitated the launch of Goldman Sachs’ Bitcoin futures trading product for CME Group in June 2021.

American investment bank Goldman Sachs continues to expand its cryptocurrency trading expertise by executing its first-ever over-the-counter (OTC) crypto options trade.

Goldman Sachs executed its first OTC crypto transaction in collaboration with the trading unit of Michael Novogratz’s cryptocurrency investment management firm Galaxy Digital.

According to a joint announcement on Monday, the OTC transaction was in the form of a Bitcoin (BTC) non-deliverable option, representing one of the first OTC crypto transactions by a major bank in the United States.

“We are pleased to have executed our first cash-settled cryptocurrency options trade with Galaxy,” said Max Minton, Asia Pacific head of digital assets at Goldman Sachs. He noted that the development marks an important milestone in Goldman Sachs’ digital assets capabilities as well as for the “broader evolution of the asset class.”

The latest collaboration between Goldman Sachs and Galaxy Digital also represents a continuation of the bank’s partnership with Galaxy to improve its crypto capabilities.

As previously reported, Galaxy facilitated the launch of Goldman Sachs’ Bitcoin futures trading product for CME Group in June 2021. According to data from the U.S. Securities and Exchange Commission, Goldman Sachs also offers its clients exposure to the Ether cryptocurrency (ETH) through Galaxy Digital’s Ethereum Fund.

“We are pleased to continue to strengthen our relationship with Goldman and expect the transaction to open the door for other banks considering OTC as a conduit for trading digital assets,” Galaxy Digital co-president Damien Vanderwilt said.

Goldman Sachs is one of the biggest traditional financial institutions in the United States to be involved in the cryptocurrency industry. The financial giant is known for backing Circle, the blockchain technology firm operating the USD Coin (USDC), the second-largest stablecoin by market capitalization. Last year, Goldman Sachs made a historic move into the crypto industry, launching its first trading services for BTC derivatives and Ether derivatives.

Mike Novogratz Says Bitcoin Should Bottom Around $40K, Sees ‘Tremendous’ Demand From Institutional Investors

January 10, 2022 Bitcoin.com

NFT company Candy Digital valued at $1.5B following $100M Series A

October 21, 2021 Coin Telegraph

NFT company Candy Digital valued at .5B following 0M Series A

Coin Telegraph

The digital collectibles company was co-founded by entrepreneurs Michael Rubin, Mike Novogratz and Gary Vaynerchuk.

Nonfungible token company Candy Digital has secured $100 million in funding to expand its product footprint and creative capabilities, marking another major milestone for the rapidly growing NFT market.

The funding will be used to expand Candy Digital’s NFT product offerings across the global sports marketplace, including creating new fan experiences, the company announced Thursday. Candy’s existing partnerships include Major League Baseball, Major League Baseball Players Association, Race Team Alliance and several college athletes.

The Series A round was co-led by private equity firms Insight Partners and Softbank Vision Fund 2, with additional participation from Connect Ventures, Will Ventures, Gaingels, Com2Us and Athletes Syndicate.

Professional sports are increasingly turning to NFTs as a way to boost fan engagement, especially in the wake of the Covid-19 pandemic, which resulted in an estimated revenue loss of $18 billion across major leagues worldwide. According to credit card giant Visa, the loss of revenue as a result of lockdowns has placed more pressure on professional sports to “diversify revenue and focus on technology” as a way to re-capture the attention of fans.

The NFT buying frenzy intensified in the third quarter, with the sale of digital collectibles hitting a record $10.7 billion, according to market tracker DappRadar. That represents an eightfold increase from the previous quarter. OpenSea remains the single largest market for NFT sales, but that could soon change as more established brands enter the space.

As Cointelegraph recently reported, cryptocurrency exchange Coinbase is planning to launch its own NFT marketplace. The waitlist for “Coinbase NFT” attracted 1.1 million signups in 48 hours. Meanwhile, Binance, the world’s largest crypto exchange by volume, launched its own NFT platform in June.

Social media platform TikTok has also announced its first foray into the NFT market with a new collection inspired by its most famous trend-setters. With roughly 1 billion users around the world, TikTok could provide more mainstream exposure to digital collectibles should the first NFT drops prove successful.

Mike Novogratz Says Institutions Are Buying Bitcoin, Politicians Need More Crypto Education

July 29, 2021 Bitcoin.com

Galaxy Digital to acquire crypto custodian and services provider BitGo

May 5, 2021 Coin Telegraph

BitGo

Under the acquisition’s terms, BitGo shareholders will get 33.8 million in newly issued shares of Galaxy Digital, in addition to $265 million in cash.

Galaxy Digital, a crypto and blockchain-focused financial services and investment manager founded by Mike Novogratz, is set to acquire institutional crypto custodian service and wallet operator BitGo.

According to an announcement on Wednesday, Galaxy Digital Holdings will pay $1.2 billon in stock and cash to settle the deal. Under the acquisition’s terms, BitGo shareholders will get 33.8 million in newly issued shares of Galaxy Digital, in addition to $265 million in cash.

To fund the cash part of the acquisition payment, Galaxy will use its balance sheet and defer a large part of the sum to be settled up to 12 months after the deal’s closure. It is currently expected to close by the end of the fourth quarter of this year. At the deal’s closure, Galaxy will issue incremental shares to BitGo’s shareholders in exchange for net digital assets.

BitGo’s shareholders will jointly own 10% of the pro forma new company, and Galaxy expects to retain the majority of current BitGo employees and management team.

BitGo presently has over $40 billion in assets under custody and provides services to over 150 exchanges, in addition to over 400 institutional clients. Each month, the company processes over 30 billion transactions and provides custody services for over 400 different digital assets.

In a statement, a Galaxy Digital representative said that the company believes the acquisition will “position Galaxy Digital as a leading global full-service platform for institutions seeking access to the crypto economy, offering an unparalleled breadth of industry-leading products and services at scale.”

As reported, Galaxy Digital recently submitted a Bitcoin (BTC) exchange-traded fund application to the United States Securities and Exchange Commission, which, if approved, would trade on the NYSE Arca exchange.

Boomers Next to Adopt Crypto, a Trillion Dollars Could Flow Into Bitcoin Over the Next Year, Says Novogratz

March 29, 2021 Bitcoin.com

Michael Novogratz

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