Mike Novogratz Increases Stake in Galaxy Digital

According to a report published on 2nd of January, the former Goldman Sachs partner Mike Novogratz has increased his percentage of shares in the Galaxy Digital project, that is based on the crypto-focused merchant bank. He was also the founder of such project.

In his past period, he has served the bank and was designated with the role of chief executive officer. Presently, Novogratz’s ownership extended to 221.2 million ordinary shares that symbolize approximately 79.3 percent of the total ordinary shares presuming their alteration. However, as per the previously revealed information, he allegedly “beneficially owned 213.7 million Class B limited partnership units, representing about 76.6 percent of ordinary shares assuming conversion.”

As per the announcement released on Wednesday that was published by Bloomberg, the CEO has made a fresh purchase of around 7.5 million shares that accounts for approximately 2.7 percent shares from that of issued and outstanding shares with a cumulative cost of C$7.42 million ($4.8 million).

Further, the sources revealed that, in the starting month of August, Canada’s TSX Venture Exchange had listed the shares of Galaxy Digital Holdings Ltd to enhance the company’s trading operations. Such process had kicked-off the company for a new start, and as the founder stake increased, the market reacted positively concerning such news. Such change in ownership has increased the share price by 7.8 percent to C$1.11 as of 10:09 A.M. Overall in the year 2018, the company’s shares have dropped down by around 19 percent amid the prolonged cryptocurrency bear market.

However, during the period of first three quarters of 2018, Galaxy Digital has accounted a realized and unrealized losses of approximately $136 million.

The process of listing of Galaxy shares on TSX took a long eight months. As the company had not got its financials audited from the last two years, which is required as per the issued norms and structures under the United States initial public offering (IPO) norms, Novogratz choose the alternative option to get the shares securely listed, which was categorised under “reverse takeover” route, where his bank combined with the TSX-listed shell company.

In spite of the existing volatility prevailing in the market, Novogratz’s opinion towards the performance of the cryptocurrency market has not bowed down, and he expressed his positive stand for the crypto market in this winter. He sounded positive particularly for Bitcoin and further added that Bitcoin’s (BTC) performance would not go down in the long run to a larger extent.

Related Cryptocurrency News