Galaxy Digital to Raise $250 Million USD to Create Credit Fund For Crypto Companies
Galaxy Digital, known for being a crypto hedge fund created by Michael Novogratz, a well-known hedge fund manager even before cryptos were a thing, has been reported by Business Insider to raise $250 million USD in order to offer loans to crypto companies via a credit fund.
The original report, which was out today, January 24, affirms that inside sources have claimed that the fund would offer USD loans to cryptocurrency and blockchain companies that were struggling due to the bear market. According to them, the demand for this kind of service has risen a lot lately because of the crisis caused by the bear.
Galaxy Digital’s loans would be backed by cryptocurrencies, mining devices and property, the report affirmed. The first fundraising round, which is set to get the cited amount of money, will go until March.
The new fund will be run out of the asset management team of the company and was created to the high demand from investors.
Galaxy Digital Has Also Been Affected By The Bear Market
Not even Galaxy Digital was immune to the bear market. The company lost a lot of money as the prices in the crypto industry were down at least 87% this year. Novogratz has told the media that ”it sucks to build a business in a bear market” last November, as he acknowledged that the situation of the company was far from ideal at the time.
In 2018, the company had a total net loss of over $76 million USD in the third quarter of the year and a $175 million USD lost within nine months. Business was certainly bad at the time.
Despite all the hurdles and issues that Novogratz had last year, he continues to invest his own money in the crypto world and its companies. It looks like his faith in the industry was really not shaken last year.
Will the next bull run happen in 2019 and make all crypto companies successful again? Too early to say, so let’s keep an eye on the market and find out.