Previously with Goldman Sachs, Michael Novogratz started Galaxy Digital, a nine-figure cryptocurrency hedge fund back in 2018. By the middle of 2019, the New York fund’s managed assets had swollen to a staggering $393.3 million. That’s an impressive figure, but it still represents a slump compared to the $421.6 million it had reached in May. By all accounts Galaxy Digital had a rocky start, recording a net loss of more than $270 million in its first year. But this was probably inevitable in a year that saw crypto prices tumble across the board.
As well as investing in cryptocurrencies, Galaxy Digital has backed close to 20 projects that use the technology in other ways, helping names such as Bakkt, BlockFi, Ripple, Block.one, BitFury, BitGo and Bitstamp. Like many of its contemporaries, these kinds of ventures have been underpinned by financial input from backers that aren’t in the crypto industry. Galaxy Digital began with $400 million of capital from Novogratz and then managed to raise a subsequent $200 million through a flotation on the Canadian TSX exchange.