The advent of cryptocurrencies is triggering the creation of innovative business concepts and new Bitcoin-based financial instruments. Now, Michael Novogratz is starting a merchant bank, to be named Galaxy Digital, which will exclusively serve the cryptocurrency and blockchain space.
MERCHANT BANK DEDICATED TO CRYPTOCURRENCIES TO RESHAPE THE FINANCE WORLD
Michael Novogratz, Chairman and Chief Executive Officer of Galaxy Investment Partners, is planning to establish and make public the first merchant bank that will focus on cryptocurrencies and blockchain-related ventures.
Novogratz has already proposed a Transaction to establish Galaxy Digital as a full service, digital assets merchant bank, which will concentrate in the following areas: distinct trading, asset management, principal investment, and advisory work.
A Bloomberg undisclosed source said that Novogratz “envisions Galaxy Digital as the Goldman Sachs of crypto.” And to achieve this objective:
“Novogratz is putting substantially all of his crypto investments into Galaxy — about $400 million of bitcoin, ether, initial coin offerings and stakes in startups such as Xapo, Bitstamp, and Ripple Labs”.
A DIGITAL ASSETS MERCHANT BANK IS BEING ESTABLISHED VIA A PHARMACEUTICAL COMPANY
According to Bloomberg, to set up the digital assets merchant bank, Novogratz is trying to raise capital for the amount of $200 million USD. If successful, through a holding company, he will list shares of the Galaxy Digital LP on the TSX Venture Exchange of Canada.
Indeed, the digital assets merchant bank is being created combining Galaxy Digital, Vancouver-based First Coin, and Bradmer Pharmaceuticals Inc.
Bradmer Pharmaceuticals Inc. entered into a letter of intent, on January 9, 2018, with Galaxy Digital LP and First Coin Capital Corp. to form a new enterprise in the blockchain and cryptocurrency space. According to Bradmer Pharmaceuticals press release:
“The series of transactions contemplated by the Letter of Intent (the ‘Proposed Transaction’) is intended to result in Galaxy Digital and First Coin combining to form a Galaxy Digital operating partnership that will be managed by the principals of Galaxy Digital. In connection with the Proposed Transaction, Bradmer, which will acquire and hold a minority investment in Galaxy Digital, is expected to change its name to ‘Galaxy Digital Holdings’ and to resume an active public listing on the TSX Venture Exchange (the ‘TSX-V’)”.
The growth of Bitcoin and other cryptocurrencies will most likely continue to encourage investors to create novel and ambitious crypto-based financial solutions. Historically, merchant banks dealt with commercial loans, international finances, and investments. Now, Bitcoin’s disruptive nature is triggering the creation of the first merchant bank fully dedicated to the cryptocurrency ecosystem.