Complete Details on Galaxy Digital Wins Auction to Buy GK8

by | Dec 15, 2022 | Market News, News | 0 comments

What is Galaxy digital?

Investment management and financial services are provided by Galaxy Digital Holdings Ltd. Trading, asset management, investment banking, mining, and principal investments are some of the Company’s business segments. It provides services in the blockchain technology, cryptocurrency, and digital asset sectors.
The Company makes investments at all levels of the capital structure, including large and small capital cryptocurrency investments, contributions to illiquid initial coin offerings (ICO) and pre-ICOs, early- and later-stage venture capital, growth equity, private equity, and all types of secured, unsecured, and structured lending.
In the area of digital assets, it offers counterparty access. Additionally, the Company provides various investment banking services during a transaction.

Founder the Company

Mike Novogratz, a former hedge fund manager and captain of Princeton University’s undergraduate wrestling team, seems well-liked by many. He may be more well-known as a risk-taker who has amassed significant victories — and substantial losses first at Goldman, then at Fortress Investments, or possibly as a result.
His merchant bank, Galaxy Digital, which bills itself as the bridge between the crypto and institutional worlds and is wholly dedicated to cryptocurrencies and the potential of emerging blockchain technology, is now his attempt to resurrect his riches. Even if it may be a considerable success, failure still seems possible. At the very least, Galaxy had lost at least $136 million in the trade as of November.
Englebardt is a veteran media and digital investor who started managing funds for Novogratz’s family business before eventually co-founding Galaxy with Novogratz. Greg Wasserman and Englebardt co-manage the Company’s significant investments division when they were both in San Francisco for the weeklong Game Developers Conference. Englebardt was in town from New York for the event. The team makes investments using two sources of funding: its balance sheet and the $325 million EOS.io Ecosystem Fund, a joint venture with Block. one that is dedicated to funding enterprises that make use of the EOS.io blockchain technology. We enquired how Galaxy would be taxed in 2018 and how Englebardt, Novogratz, and the rest of their workforce of 75 persons will be able to provide the expected returns.

Galaxy Digital won the auction.

Galaxy Digital, a financial services company with a cryptocurrency emphasis founded by Mike Novogratz, said in a press release on Friday that it had won the auction for the self-custody platform GK8 from bankrupt cryptocurrency lender Celsius Network.
Although financial details of the transaction were kept under wraps, Galaxy spokesperson Michael Wursthorn claimed the amount was much less than what Celsius spent a year earlier. According to reports, Celsius purchased GK8 in November 2021 for $115 million. Bloomberg previously covered the Galaxy-GK8 agreement.
The purchase would help Galaxy Digital Company to increase the range of its prime brokerage services. A team of about 40 professionals of cryptographers, and blockchain technologists, will be joining the Company. According to the Company, the purchase, pending regulatory clearance, will increase Galaxy’s worldwide reach by adding a new office in Tel Aviv, Israel.
As the Company’s founder and CEO, Novogratz, remarked in the statement, “Adding GK8 to our primary offering at this critical juncture for our industry also underlines our continuous determination to take advantage of the strategic opportunities to build Galaxy sustainably.”
In July, Celsius filed for bankruptcy protection and listed some of its assets for sale due to a decline in the cryptocurrency market. Galaxy, on the other hand, abandoned its plan to spend $1.2 billion for bitcoin custody specialist BitGo.
In August, Galaxy said that BitGo had yet to submit financial accounts by July 31. In September, BitGo filed a lawsuit against Galaxy for damages after the acquisition fell through.