Galaxy Digital Seeks More Crypto Bankruptcy Assets After FTX Deal
Galaxy Digital, led by billionaire Mike Novogratz, is looking to sell assets from bankrupt digital asset companies following a successful deal involving FTX. This has significantly increased Galaxy’s funds under management from $1.7 billion to $5.3 billion. The company was chosen by administrators of the collapsed crypto exchange to manage the sale, hedging, and staking of FTX’s Bitcoin and Ethereum coins, as well as its holdings of Grayscale’s Bitcoin trust.
The win has been a positive development for Galaxy, which recorded a $94 million loss in Q3 2023. The asset management arm of Galaxy has been gradually selling FTX’s tokens on the open market to help recover the value of assets and repay creditors.
Galaxy Digital Positioned for Lucrative Mandates
Galaxy Digital’s success with the FTX mandate positions the company to win other lucrative mandates in the future, according to analysts. The company manages a range of funds and recently partnered with Flow Traders and DWS to launch a euro-denominated stablecoin. Galaxy is also competing for a spot bitcoin exchange-traded fund (ETF) and is seeking collaboration with Invesco and Cboe Global Markets.
The approval of a bitcoin ETF would be a significant moment for the crypto industry, according to Steve Kurz, global head of asset management at Galaxy Digital.
Hot Take: Galaxy Digital Expands Its Asset Sales Strategy
Galaxy Digital’s successful deal with FTX has boosted its funds under management and positioned the company for future opportunities. By selling assets from bankrupt digital asset companies, Galaxy aims to recover value and repay creditors. This strategy aligns with its goal of winning lucrative mandates and expanding its presence in the crypto market. With plans to move its stock market listing and collaborations with major institutions, Galaxy Digital is poised for growth. The potential approval of a bitcoin ETF could be a game-changer for the industry, further solidifying Galaxy Digital’s position as a key player in the cryptocurrency space.
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