Coinspeaker
Galaxy Digital Announces a $100M Fund to Invest in Early-stage Crypto Companies
Galaxy Digital Holdings Ltd (Toronto: GLXY), a veteran financial services and investment management company focused on digital assets, has announced that it is putting together up to $100 million in a fund dubbed Galaxy Ventures Fund I, LP.
According to the announcement, Galaxy Digital intends to invest at least $1 million in early-stage startups focused on financial applications, Software Infrastructure, and protocols built on blockchain technologies.
As a result, the Galaxy Ventures Fund I, LP, will significantly improve on its ballooning balance sheet amid the ongoing cryptocurrency bull market.
Worth noting that Galaxy Digital is a top-tier cryptocurrency investor having injected more than $200 million in over 100 web3 projects in the past six years. Mike Wursthorn, head of communications at Galaxy Digital, noted:
“We’re excited to build on our successful track record of investing in digital asset ventures and blockchain infrastructure. For years, we’ve been putting our own capital behind these innovators. Now we’re launching Galaxy Ventures Fund I LP to partner with outside investors, allowing us to continue fueling the digital asset ecosystem by backing promising early-stage ventures.”
Galaxy Digital Market Outlook
Led by founder and Chief Executive Officer Michael Novogratz, Galaxy Digital has thrived in the past crypto bear market and is now well positioned to gain further in the confirmed bull cycle. According to the latest stock market data, GLXY stock has gained around 182 percent in the past year to trade at around $14.39 on Thursday.
The company has a market capitalization of about $4.38 billion and is on the cusp of being incorporated in Delaware in preparation for the NASDAQ listing.
According to the 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 $100 new fund, Galaxy Digital’s portfolio will continue to grow further amid the mainstream adoption of digital assets and web3 platforms.
Market Picture
The global cryptocurrency market cap has scaled to nearly $3 trillion fueled by the heightened adoption by institutional investors. Although Bitcoin price has been trapped in a short-term consolidation below $74k and above $60k, most experts unanimously agree on an inevitable rally beyond $100k in this bull cycle.
As Coinspeaker reported, more investors have shifted 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 (RWA) tokenization.
Galaxy Digital Announces a $100M Fund to Invest in Early-stage Crypto Companies
