Galaxy Digital has closed a $175 million enterprise fund, its first with outdoors capital, as the corporate ramps up plans to spend money on early-stage crypto startups.
The fund, which exceeded its $150 million goal, marks the primary time Galaxy has accepted outdoors capital. Till now, the corporate had relied solely by itself steadiness sheet for enterprise investments, in accordance with a report from Fortune.
Normal accomplice Mike Giampapa instructed the outlet that the objective is to again early-stage firms tackling stablecoins, DeFi functions, and different blockchain use instances shifting past hypothesis.
“You’re seeing this elementary shift from extra speculative use instances of blockchains to one thing that’s way more…tangible,” he instructed Fortune.
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Galaxy expands enterprise arm after FTX collapse
In line with Giampapa, Galaxy had lengthy needed to scale its enterprise operation past steadiness sheet investing however noticed the best second post-FTX collapse.
“Quietly, we had this stablecoin revolution,” he stated. “Whereas the business was getting our ft beneath us once more, it grew to become apparent that we needed to take our enterprise franchise to the following degree.”
The brand new fund is anchored by Galaxy itself, which holds each basic accomplice and restricted accomplice stakes. Giampapa declined to call different traders however described them as institutional gamers, together with household workplaces and fund-of-funds linked to Galaxy’s asset administration shoppers.
Galaxy introduced a primary shut of $113 million in July 2024 and has already deployed $50 million, backing firms corresponding to Monad (a performance-focused blockchain) and Ethena (the issuer of a yield-bearing stablecoin).
Cointelegraph reached out to Galaxy for remark however had not obtained a response by publication.
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Galaxy turns into a crypto big
Based in 2018 by former Goldman Sachs accomplice Mike Novogratz, Galaxy has grown right into a sprawling crypto conglomerate with publicity to asset administration, Bitcoin exchange-traded funds (ETFs), mining and enterprise investing.
In Might, the agency was listed on Nasdaq and reported $7 billion in property underneath administration. Nonetheless, it suffered a lack of $295 million within the first quarter of 2025 on account of falling costs and restructuring in its mining arm.
As Cointelegraph reported, Galaxy Digital clocked its largest buying and selling day of 2024 on Nov. 5, the day the 2024 US election was referred to as and Donald Trump was declared president-elect. On that day, Novogratz’s internet value surged about 15%, or by round $600 million, to $4.6 billion.
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