Michael Novogratz’s Galaxy Digital is in the process of raising $100 million in venture funds, according to Bloomberg. The raise came right around the corner when the firm had posted a positive result and assets under management.

Galaxy Digital to Use External Sources for Raise

Bloomberg highlights that the majority of Galaxy Digital’s $100 million goal is anticipated to come from outside investors as the company begins the process of building a new venture fund.

Galaxy Ventures has long made direct financial investments from the corporation into several cryptocurrency startups that are concentrating on payments, decentralized finance, and infrastructure. However, the business decided last year to launch Galaxy Ventures Fund I and make it available to outside investors, according to a person with knowledge of the decision who wished to remain anonymous because the details of the decision have not been made public.

Galaxy Ventures will raise the capital while keeping an eye on its current portfolio. According to the source, a startup will require a minimum investment of $1 million.

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Q4 Profit Soar For Michael Novogratz’s Firm

The fourth-quarter results of Michael Novogratz’s Galaxy Digital showed the firm swinging to profit. In addition to turning a profit in the fourth quarter, the blockchain startup disclosed the amount of digital assets it possesses through its total assets under management report.

The company’s total profit skyrocketed because of strong trade volumes and favorable cryptocurrency prices during the quarter. Nevertheless, upon the release of the results, the company’s shares dropped.

The company’s net income for the period was $301.5 million, or 90 cents per share, as opposed to a loss of $288.8 million, or $3.13 last year. The company’s operations benefited, according to a statement released by Galaxy, which cited “heightened market volatility and increased trading volumes” as the primary causes. Another major aspect was the increase in the cost of digital assets.

For the year that concluded in February 2024, the corporation reported income before taxes of about $300 million. Furthermore, Assets Under Management, or “AUM,” increased to $10.1 billion as of February 29, 2024.

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The post Galaxy Digital Set to Raise $100 Mln Venture Fund with External Backing appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am