Key Points
- Galaxy Digital Holdings Ltd is launching a $100 million fund, Galaxy Ventures Fund I, LP, for early-stage crypto startups.
- The company has thrived in the crypto market, with its stock gaining around 182% in the past year.
Galaxy Digital Holdings Ltd, a well-established financial services and investment management company specializing in digital assets, has unveiled plans to establish a fund of up to $100 million. This fund, named Galaxy Ventures Fund I, LP, is targeted at early-stage crypto companies.
The company plans to invest a minimum of $1 million in startups that focus on financial applications, software infrastructure, and blockchain-based protocols. This move will significantly enhance the company’s already impressive balance sheet, especially considering the ongoing cryptocurrency bull market.
Galaxy Digital’s Investment History
Galaxy Digital has a solid reputation as a leading cryptocurrency investor, having invested over $200 million in more than 100 web3 projects in the past six years. Mike Wursthorn, the head of communications at Galaxy Digital, expressed his excitement about building on their successful track record of investing in digital asset ventures and blockchain infrastructure. He also mentioned their intent to partner with outside investors through the Galaxy Ventures Fund I LP to continue supporting promising early-stage ventures.
Galaxy Digital’s Market Position
Under the leadership of founder and CEO Michael Novogratz, Galaxy Digital has prospered during the past crypto bear market and is poised to reap further benefits from the confirmed bull cycle. Recent stock market data shows that GLXY stock has seen an increase of around 182% in the past year, trading at approximately $14.39.
The company has a market capitalization of roughly $4.38 billion and is nearing incorporation in Delaware in preparation for a NASDAQ listing. According to recent fourth-quarter results, Galaxy Digital reported a net income of $296 million for the full year and a total of $10.1 billion in assets under management (AUM) as of February 29, 2024. GalaxyOne client platform reported about 75 institutional clients, with over $1 billion in assets.
With the new $100 million fund, Galaxy Digital’s portfolio is set to expand further amid the mainstream adoption of digital assets and web3 platforms.
The Current Crypto Market
The global cryptocurrency market cap has reached nearly $3 trillion, driven by increased adoption by institutional investors. Despite Bitcoin’s price being stuck in short-term consolidation below $74k and above $60k, most experts agree on an inevitable rally beyond $100k in this bull cycle.
More investors are shifting their focus to layer one blockchain projects with scalable smart contracts. For instance, Ethereum and Solana’s networks are expected to register more gains in the coming months due to the significant demand for real-world assets tokenization.
