Michael Novogratz, hedge fund legend and former Wall Street macro trader had complicated plans to take Galaxy Digital LP, the first ever crypto merchant bank, live.
On January 9th, 2018 a press release was shared on MarketWired with the title, “Galaxy Digital, First Coin and Bradmer Pharmaceuticals Announce Business Combination and Establishment of Blockchain, Digital Asset and Cryptocurrency Platform”.
A big believer in cryptocurrencies and the future of blockchain, Novogratz has publically announced that over 30% of his net worth is vested in virtual currencies.
Galaxy is building out a full fledged crypto merchant bank. I have over 30 percent of my net worth in crypto assets. We have venture bets, ICOs, tokens, investments in funds, mining and advisory. We also trade very actively. We are making a large long term bet on crypto.
— Michael Novogratz (@novogratz) December 22, 2017
Via a series of carefully executed manoeuvers and $250MM in funding, Novogratz has begun operations for Galaxy Digital in Toronto. As reported in this Bloomberg News article, investors in Galaxy Digital had committed to buy its shares via a holding company called Bradmer Pharmaceuticals that would then eventually trade on Toronto’s TSX Venture Exchange (TSX-V), following a reverse takeover of the pharma company, much unlike a typical IPO.
For its first major investment using Galaxy Digital’s EOS.io Ecosystem, Novogratz backed Everipedia, the decentralized offshoot of Wikipedia, to raise $30 million in an equity sale and Series A funding round, restricted to strategic investors, according to statements.
This marks the first possible entry of institutional status into the cryptocurrency markets, which is still largely dominated by retail investors.