Galaxy Digital Seeks $100 Million for New Venture Fund, Opens Doors to Outside Investors

By Aaron Feuerstein April 04, 2024 In Cryptocurrency, Investing
  • Galaxy Digital is raising US$100 million for a new venture fund targeting emerging crypto businesses, expanding beyond internal funding.
  • Michael Novogratz notes significant improvement in his company’s performance, attributing it to diversified crypto activities.
  • Despite regulatory challenges, Novogratz remains hopeful for a fairer SEC approach to crypto under future administration changes.

According to reporting by Bloomberg, Galaxy Digital, Michael Novogratz’s digital asset manager and blockchain firm continues its foray into the crypto sector. The report said the firm is in early stages of raising US$100 million (AU$152 million) for a new venture fund – which will invest in emerging crypto enterprises, CoinDesk confirmed.

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In the past Galaxy used its own money to invest in crypto start-ups but recently instituted Galaxy Ventures Fund I, a fund open to outside investors—although Bloomberg cites anonymous sources as no public announcement has been made.

According to a person close to the matter, the minimum investment in a start-up will be US$ 1 million (AU$ 1.5 million).


Novogratz Urges Level Playing Field for All Crypto Companies

CEO Michael Novogratz said in a recent interview that his company has been doing very well and that he has seen a significantly positive change in the performance and prospects of Galaxy Digital compared to six months prior.

He attributed this to a dramatic increase in activity, including a surge in staking, becoming highly competitive in mining due to their advantageous position in Texas, and witnessing growth in their derivatives and lending sectors.

And so when I look at it all together, it just feels like a different business than six months ago.

Michael Novogratz

This progress has been made despite the challenging regulatory environment and a legal landscape in the United States that is unwelcoming to activities in the crypto space that go beyond Bitcoin.

Novogratz said with the departure of Jay Clayton and the arrival of Gary Gensler at the helm of the Securities and Exchange Commission (SEC) things have taken a turn for the worse.

The new administration came in and […] no companies that do anything other than Bitcoin have made it through. It feels very un-American that we’ve got this one group of companies that go public, that have access to the capital markets, that have access to cheaper funding and we’re waiting on the sidelines.

Michael Novogratz

In 2022 Galaxy filed a registration statement Form S-4  with the regulator to get a NASDAQ listing and a relocation from the Cayman Islands to Delaware.

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But Novogratz is hopeful that, no matter which way the presidential elections in November go, there will be a change in policy stance by the SEC to give anyone involved in crypto an equal fair go.

I am optimistic that things will change. No matter who wins the election—I think that there’ll be turnover at the regulators […] pushing the SEC to you know to kind of look at this industry as a tech forward industry, a future forward industry and to be fair to all the players.

Michael Novogratz

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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