An early Bitcoin bull and former Wall Street trader, Mike Novogratz is bringing cryptocurrency to institutional investors. Following a crypto bear market, Novogratz’s merchant bank Galaxy Digital LP listed on Canadian stock exchanges today, August 1, 2018.
Galaxy Digital Makes Its Debut Following Q1 Loss
Novogratz cryptocurrency-focused merchant bank Galaxy Digital LP will be available for trading on Canada’s TSX Venture Exchange (TSX-V) on August 1, reports Bloomberg.
Galaxy Digital (GLXY) shares were valued at C$5 per share during its January 2018 private placement. The stock opened at C$2.75 today and fell almost 20% within the first half hour after listing.
Reflecting on the stringent approval process, Novogratz said that Canadian regulators took longer than he’d expected to list Galaxy on its exchange.
“If I knew what I know now, knew the crypto markets were going to swoon as much, and it was going to take so long, I might have stayed private for another year or so and then gone public.”
The TSX Venture Exchange acts as a public venture capital marketplace for emerging companies too small to list on the Toronto Stock Exchange.
While Galaxy was awaiting approval, the bear market dragged cryptocurrency prices towards monthly lows, and Galaxy Digital suffered a significant first-quarter loss. According to a press release, Galaxy Digital reported unrealized losses of around $134 million in Q1 2018 spread across its digital asset and equity investments.
Despite a staggering launch, Novogratz showed optimism for the future of the firm:
“I am very proud of the progress that we have made since the beginning of the year… I have complete confidence in our team’s ability to continue driving growth and believe the Company is strategically positioned to help further institutionalize the digital assets and blockchain technology industry.”
Considered the “Goldman Sachs of Crypto,” Galaxy Digital will invest in cryptocurrency and blockchain companies, trade digital assets and offer advisory services.
Earlier in July, Novogratz advised shareholders to stay patient and told CNBC Africa’s Crypto Trader that he believes the overall crypto market has found its bottom.
“I do think we’re really building a nice bottom for the nice move up. I think the next move up is going to need custody from a trusted source, it’s going to need a little more regulatory clarity…”
As previously reported by CryptoSlate, Novogratz predicted that the total cryptocurrency market cap will reach $800 billion by the end of 2018.
Cover Photo by Brxxto on Unsplash