Mike Novogratz Invests $5 Million More into his Crypto Venture Fund Galaxy Digital, Nears 80% Stake
Michael Novogratz is the CEO of Galaxy Digital Holdings, and he has been working to build up this platform. According to Bloomberg, he recently increased his shares within the merchant bank, allocating about $5 million towards the crypto venture fund. With this purchase, Novogratz now holds a 79.3% stake in Galaxy Digital, which is traded on the TSX Venture Exchange.
On Wednesday morning, the stock in Galaxy Digital rose by 21.36%. This is great news for both Novogratz’s investment and the stock, considering the loss of 19% last year during the bear market.
As of the third quarter last year, Galaxy had dropped by $76.65 million, though Novogratz did not lose hope that the industry would rise again. In fact, he was so bold that he predicted that a bull run would be coming in 2019 with new institutional investors.
Galaxy Digital originally launched during a reverse merger in 2018, which combined them with a pharmaceutical company that was already publicly listed.
Galaxy Digital Holdings was not listed on TSX until 8 months into its progress, when the reverse merger took place. Before then, the company would have required an initial public offering (IPO) to take place in the United States first, which would have necessitated proof of audited financials over the last two years.
However, since it was not around for two years in the first place, the merger option appeared to be more beneficial.
As stated by a report from Bloomberg this morning, “Shares of Galaxy Digital rose 7.8 percent to C$1.11 as of 10:09 a.m. The shares fell 19 percent in 2018 while prices in the digital asset market collapsed.”