Galaxy Digital has closed a $175 million enterprise fund, its first with exterior 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 exterior capital. Till now, the corporate had relied solely by itself stability sheet for enterprise investments, in response to a report from Fortune.
Common accomplice Mike Giampapa informed the outlet that the aim is to again early-stage corporations tackling stablecoins, DeFi functions, and different blockchain use instances transferring past hypothesis.
“You’re seeing this elementary shift from extra speculative use instances of blockchains to one thing that’s far more…tangible,” he informed Fortune.
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Galaxy expands enterprise arm after FTX collapse
In keeping with Giampapa, Galaxy had lengthy needed to scale its enterprise operation past stability sheet investing however noticed the fitting second post-FTX collapse.
“Quietly, we had this stablecoin revolution,” he stated. “Whereas the trade was getting our ft beneath us once more, it turned apparent that we needed to take our enterprise franchise to the subsequent stage.”
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 corporations comparable 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 acquired 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 Could, the agency was listed on Nasdaq and reported $7 billion in property beneath administration. Nonetheless, it suffered a lack of $295 million within the first quarter of 2025 as a consequence 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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