The venture fund arm of Michael Novogratz’s Galaxy Digital plans to raise $100 million in new venture funds. This initiative follows the firm’s recent positive financial performance and an uptick in assets under management.
The move marks a strategic shift for Galaxy Digital, known for its direct financial investments in various cryptocurrency startups focusing on payments, decentralized finance, and infrastructure. Last year, the company made the decision to establish Galaxy Ventures Fund I, opening it up to outside investors, as disclosed by an anonymous source familiar with the matter.
Galaxy Ventures Fund I is expected to attract the majority of its $100 million target from external investors, expanding the firm’s investment reach beyond its internal resources. The minimum investment requirement for startups seeking funding from this venture is set at $1 million.
The decision to raise external capital coincides with Galaxy Digital’s impressive performance in the fourth quarter, where the company turned a profit. The firm attributes its success to robust trade volumes and favorable cryptocurrency prices during the period, despite a subsequent drop in share prices following the results announcement.
According to Galaxy Digital’s financial disclosures, net income for the fourth quarter amounted to $301.5 million, or 90 cents per share, marking a significant turnaround from the previous year’s loss. The company’s total income before taxes for the fiscal year ending in February 2024 stood at approximately $300 million, with Assets Under Management reaching $10.1 billion as of February 29, 2024.
Galaxy Digital’s pursuit of external funding underscores its commitment to expanding its investment portfolio and capitalizing on opportunities within the rapidly evolving cryptocurrency landscape.
