Galaxy Digital to Launch $100M Venture Fund

Galaxy Digital, led by Michael Novogratz, is acquiring $100M in venture capital, primarily from outside investors, as it launches a new venture fund.

Bloomberg has reported that Michael Novogratz’s Galaxy Digital is acquiring $100M in venture capital. The raise was just around the corner, when the company had achieved a favorable result and assets under management.

Galaxy Digital to Use External Sources for Raise

As Galaxy Digital begins the process of constructing a new venture fund, Bloomberg underlines the fact that the majority of the $100 million objective that the firm has set for itself is anticipated to come from investors from outside the company.

For a considerable time, Galaxy Ventures has been making direct financial investments from the corporation into several cryptocurrency firms focusing on payments, decentralized finance and infrastructure.

However, according to a person with knowledge of the decision who asked to remain anonymous because the specifics of the decision were made public, the company chose to form Galaxy Ventures Fund and makes it open to outside investors.

The company made this decision in the previous year. Meanwhile, Galaxy Ventures will continue to monitor its existing portfolio while it works to raise capital. The source said a business will need a minimum investment of $100m to get off the ground.

The results of Galaxy Digital, which Michael Novogratz owns, showed that the company was making a profit during the fourth quarter. The blockchain startup revealed the number of digital assets it holds in its total assets under management report, as well as the fact that it turned a profit during the fourth quarter of the year.

As a result of robust trade volumes and favorable cryptocurrency prices during the quarter, the company’s total earnings exploded to significantly higher levels.

Despite this, the company’s shares experienced a decline following the public announcement of the results. In comparison to the previous year, when the firm reported a loss of $288.8 million, or $3.13 per share, the current period’s net income for the company was $301.5 million, or 90 cents per share.

According to Galaxy Digital’s statement, the situation benefited the company’s operations. The statement highlighted “heightened market volatility and increased trading volumes” as the key drivers of the improvement. The rise in the price of digital assets was still another significant factor under consideration.

The firm recorded approximately $300 million in income during the fiscal year ending in February 2024. As of February 29, 2024, the assets under management, often known as “AUM,” had climbed to a total of $10.1 billion.