Mike Novogratz Increases Stake in Galaxy Digital to 80% January 3, 2019 January 3, 2019 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsJanuary 3, 2019 by Kelly Cromley

Mike Novogratz Increases Stake in Galaxy Digital to 80%

Michael Novogratz puts more money where his mouth is as far as cryptocurrencies are concerned. The founder and chief executive officer of Galaxy Digital Holdings Ltd. acquired 7.5 million common shares of the TSX Venture Exchange registered company, valued at C$7.42 million, representing approximately 2.7% of the issued and outstanding common shares, according to Wednesday’s statement. He controls nearly 80% of the stock.

Galaxy Digital, headquartered in New York, debuted in August following a merger with a Toronto junior exchange-listed shell company through a reverse takeover.

Following the news, Galaxy Digital’s shares rose 36% to $1.40. The shares decreased by 19% in 2018, while prices collapsed on the digital asset market. Novogratz had beneficially owned 213.7 million Class B limited partnership units prior to purchase, representing approximately 76.6% of the common shares assuming conversion.

After the purchase, Novogratz owns & controls 221.2 million common shares, representing approximately 79.3% of the converted common shares. The journey to the listing of Galaxy on TSX took about 8 months. In the absence of the two years of audited financial resources required for an initial public offering (IPO) from the United States, Novogratz opted to secure a listing for his bank via a so-called “reverse takeover” route— combining his new bank with a shell company already listed in TSX.

As markets continue to tingle, Novogratz nevertheless repeatedly expressed his optimism over cryptocurrency markets this winter, especially Bitcoin (BTC), saying that he does not expect the price of the coin to drop much further. The realized and unrealized losses of Galaxy Digital amounted to $136 million in the first three quarters of 2018.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.