Former Goldman Sachs’ partner Mike Novogratz has invested nearly $5 million more in his crypto-focused merchant bank, Galaxy Digital Holdings, Ltd., thus increasing his shares in the venture to almost 80%.
Novogratz, who also serves as CEO of the bank, purchased 7.5 million ordinary shares of the company, or 2.7 percent of total shares outstanding, for 7.42 million Canadian dollars ($4.8 million), according to a press release published on Wednesday, January 2.
The purchase increased his total stake to about 79.3% of Galaxy Digital, which trades on the Toronto Stock Exchange’s TSX Venture Exchange.
Previously, Novogratz “beneficially owned 213.7 million Class B limited partnership units, representing about 76.6% of ordinary shares assuming conversion.”
Markets responded positively to news of the founder’s increased stake, with shares reportedly rising 7.8% to C$1.43 as of 02:15 PM EST. The stock fell 19 percent last year amid a bear market for crypto investments.
Galaxy Digital went public in August last year through a reverse merger with a listed pharmaceutical company.
In November 2018, Galaxy reported a $76.65 million net loss for the third quarter of 2018. Mike Novogratz commented on the results at the time by saying that it “sucks to build a business in a bear market,” but still expressed optimism about the industry and predicted an influx of institutional money into cryptocurrencies in 2019 — and a resulting bull run.
The same month, Mike Novogratz’s crypto investment bank, Galaxy Digital Capital Management, has announced it was repositioning its advisory business from focusing on small ICO advisory and blockchain consulting to instead serve larger, more institutional clients in the space.
Follow ForkLog on Twitter and Facebook!
Subscribe to our Newsletter
Article First Published here