Galaxy Digital Seeking to Score Deals From Defunct Cryptocurrency Companies

Galaxy Digital Aiming to Complete Bankruptcy Sales for Disgraced Crypto Businesses

Galaxy Digital, a cryptocurrency and blockchain financial services company, is targeting the asset sales of crypto businesses to grow its capital. According to a recent FT report, the firm led by American billionaire Mike Novogratz would be eyeing other crypto-bankrupt companies to facilitate the sale of their assets.

The company, which was selected to sell FTX’s tokens, saw its assets under management (AUM) climb from $1.7bn to more than $5bn after this. The now-defunct exchange selected Galaxy due to his “extensive experience in areas relevant to digital asset management and trading.”

Galaxy’s next target would be FTX’s venture capital portfolio, which has a sizable stake in Anthropic, a disrupting artificial intelligence (AI) company that has raised capital from Google and Amazon and has a valuation of over $18bn.

Steve Kurz, global head of asset management at Galaxy, explained that Galaxy Digital qualifies for these tasks due to its experience and performance. He stated:

We have a crypto venture team that has been investing off our balance sheet for five years. The record that we have on that side of our asset management business means we’d be a good candidate for something like that.

Galaxy Digital, which is also seeking approval to offer a bitcoin spot ETF, is bullish on the future of bitcoin. Kurz declared:

The world doesn’t understand the impact that these vehicles and a bitcoin ETF will have to bitcoin and crypto over time.

Novogratz believes that a spot bitcoin ETF will be approved this year.

What do you think about Galaxy Digital’s appetite for crypto from defunct businesses? Tell us in the comments section below.