Billionaire Investor Mike Novogratz’s Crypto Merchant Bank Raises $250 Million

Mike Novogratz, a billionaire investor and proponent of cryptocurrencies, is once again in the limelight. According to new reports, Novogratz has raised a whopping $250 million for a new cryptocurrency merchant bank that goes by the name Galaxy Digital.

The news shouldn’t come as a surprise considering that the hedge fund manager had already laid out a plan for a crypto asset fund worth $500 million back in September 2017.

Bloomberg reports that the proposed private placement will allow Galaxy Digital to manage and trade bitcoin and other digital currency assets. Additionally, it will also provide consultation to emerging companies in the blockchain/cryptocurrency sector.

Meanwhile, an independent report by Taiwan’s Economic Daily has shed more light on Novogratz’s new venture. The daily reports that Terry Gou, founder and chief executive of Foxconn (HCM), has decided to come aboard on Galaxy Digital with an initial placement of $18 million. However, as the fundraising was done through private placements, we are yet to have a confirmation on the full list of investors.

The report further claims that investors will be required to buy Galaxy Digital shares through a holding company.

Multitude of services

Novogratz had earlier indicated that he wants to make Galaxy Digital the “Goldman Sachs of crypto.” This essentially means that the new venture has a fourfold business model in place.

Apart from trading bitcoin and altcoins, the merchant bank will offer the following services:

  • Making principal in the crypto market
  • Manage assets on behalf of third-parties
  • Consultation on blockchain ventures

More importantly, now that Galaxy Digital has no dearth of funding, the company is reportedly planning on acquiring Canadian startup First Coin Capital, which will be later merged with Bradmer Pharmaceutical.

The new entity following the merger will be listed on TSX Venture Exchange, Toronto, through a reverse takeover. Once all these processes are taken care of, the publicly listed new entity will be renamed to Galaxy Digital.

The way the crypto market has been conducting itself since the beginning of 2018, a cryptocurrency merchant bank is perhaps one of the most ambitious concepts to come out.

However, Galaxy Digital has managed to raise a pretty competent management team to ensure a successful launch.

While Novogratz will be the chairman and the chief executive, the rest of the management team includes known faces such as Richard Tavoso, former chief of global arbitrage at RBC Capital Markets; David Namdar, formerly associated with UBS AG and Millennium Partners; as well as Christopher Ferraro, who previously worked with HPS Investment Partners.

Feature image by Lumen

1 Response

  1. I think it’s about time someone created such an institution in this market. I hope they do become the “Goldman Sachs of crypto.” because that would mean great services for its clients and improvements for the whole market.

    It’s always interesting to me to see how easily billionaire can raise money for something like this. I wonder how many months it took him to do so?

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