In a big move, the Delaware Supreme Court has given BitGo’s $100 million lawsuit against Galaxy Digital a new chance by saying no to a lower court’s choice to end the case. This important decision means BitGo can keep trying to win its case about a deal to come together that didn’t work out, which was worth a lot of money, like $1.2 billion.

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• Delaware Supreme Court revives BitGo’s $100 million lawsuit against Galaxy Digital.
• The court finds the merger agreement unclear, opening the door for new evidence.
• Galaxy Digital remains strong, managing FTX assets and foreseeing increased interest in Bitcoin ETFs.

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Delaware Supreme Court Clears Path for BitGo’s $100 Million Lawsuit Against Galaxy Digital

The problem started when BitGo and Galaxy Digital planned to join forces, but things didn’t go as planned. On May 22, the top court in the state noticed that the words used in their deal weren’t clear. Because of this, the court said the earlier decision had to be changed. This means they can now look at more information to determine what the deal was supposed to mean.

BitGo had earlier, in August 2022, said that Galaxy Digital didn’t follow the deal on purpose. Galaxy Digital said it was okay to leave the deal because BitGo didn’t share its financial details for 2021 as they were supposed to.

R. Brian Timmons, a lawyer from Quinn Emanuel who speaks for BitGo, was very happy about the court’s new decision. He said, “We are thrilled with the appeal’s outcome, representing a victory for justice. We eagerly anticipate proceeding with our case in the Chancery Court.”

Before this new ruling, in June 2023, the Delaware Court of Chancery had denied BitGo’s lawsuit, with Vice Chancellor J. Travis Laster saying Galaxy Digital was right to end the deal. But now, after the Supreme Court’s latest decision, Galaxy Digital has said it will keep defending itself strongly, believing in its case’s strength.

Galaxy Digital, led by Mike Novogratz, had big plans to grow bigger by buying BitGo in May 2021 as part of its plans to offer its shares to the public in the USA. But then, everything changed when the cryptocurrency exchange FTX fell apart in November 2022, showing that Galaxy Digital was at risk of losing $77 million just before FTX went bankrupt.

Even with these tough times, Galaxy Digital keeps moving forward. Its Galaxy Asset Management part is making big steps. Picked by the FTX estate, this division handles FTX’s cryptocurrency in smart ways, showing Galaxy Digital can handle the ups and downs of the cryptocurrency world.

Even though Galaxy Digital’s stock (GLXY) fell slightly to $12.80 after the market closed, it has increased by 23.5% since the start of the year. However, it’s still much lower than its high point in November 2021.

Steve Kurz, who is in charge of Galaxy Asset Management, thinks more big financial groups will start being interested in Bitcoin ETFs directly related to Bitcoin’s price and expects this to take off soon.

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