A cryptocurrency focused merchant bank Galaxy Digital LP, founded by a former hedge fund manager Mike Novogratz, has recorded a $134 million loss during the first quarter of the year, according to a disclosure from July 25.
The loss is partly due to the decrease in the price of bitcoin since the bstart of 2018. But the loss was largely unexpected as Novogratz earlier laid out a restructuring plan that included several mergers and acquisitions that were set to raise around $192 million.
Novogratz hoped to conclude the deal before the end of Q1, however, due to a delay in regulatory approval the deadline was moved. The former hedge fund manager hopes to list shares of Galaxy Digital on Canada’s TSX Venture Exchange after the deal comes through.
WHY IS IT IMPORTANT?
1. Mike Novogratz aims to establish a crypto centric merchant bank that would become an active investor in blockchain ventures, engage in asset management and advisory.
2. According to disclosure, Galaxy Digital holds around $281.7 million in assets (March 31), $225.8 million of which is invested in digital assets.