Galaxy Gains Over $70 Million (120% Return) After Partial Exit From its EOS Position with Block.one
Galaxy Digital Holdings is selling part of its Block.one position, so it is no longer a “material investor” in the company. Galaxy Digital accepted a public offer for its ordinary shares on May 20, according to a statement.
Such designation generally means a position of more than $ 100 million. Still, Galaxy said it takes into account multiple factors to determine if a position is “material.”
As indicated in its latest reports, on April 18 the Association accepted an offer to purchase the ordinary shares of Block.one. On May 20, 2019, the transaction was closed and the Company received $ 71.2 million for the shares offered, which represent the majority of the Company's position and a yield of 123% on the investment made. This should help with the losses that Galaxy Digital had last year of $270 Million.
After the transaction, the remaining ordinary shares of the Company in Block.one will no longer represent an important investment position.
“The acceptance of Block.one's public offer reflected the decision to rebalance the portfolio to maintain an adequate level of diversification after the position increased due to its superior performance relative to the rest of the portfolio. with Block.one as a key partner in several of our business lines, including the Galaxy EOS VC Fund, which invests in companies that rely on the EOS.IO protocol, and remains enthusiastic about the EOS.IO protocol, “
As revealed above, the Alliance considers a variety of quantitative and qualitative factors to determine whether an investment is considered a significant investment position at the date of each report. The factors considered include, but are not limited to, the proportion of each investment to the total assets; if any investment is materially greater than other portfolio investments; the concentration of the portfolio and the associated risks.
The liquidity of each investment, or the lack of it; the impact of said investment on the assets or operations of the Company; and the existence or absence of other factors that could cause one to conclude that the investment was important for the Association despite its absolute size.
About Galaxy Digital
Galaxy Digital is a diversified, multi-service commercial bank dedicated to the digital asset industry and blockchain technology. The Galaxy Digital team has extensive experience in investments, portfolio management, capital markets, operations, asset management and blockchain technology. Galaxy Digital currently operates four different business lines, which include: Commerce, Asset Management, Principal Investments, and Advisory Services.
The CEO and founder of Galaxy Digital are Michael Novogratz. The company is headquartered in New York City, with offices in Tokyo, Hong Kong, the Cayman Islands (registered office) and New Jersey.