Galaxy Digital, the cryptocurrency financial services firm founded by billionaire Mike Novogratz, has made two significant moves that signal deepening institutional involvement in the digital asset space. First, the company has acted as the cornerstone investor in a $100 million registered direct offering for DeFi Technologies, a firm focused on digital asset expansion. The investment, structured through the acquisition of common shares and warrants, is earmarked to enhance DeFi Technologies' capabilities in trading, lending, and staking operations, thereby boosting market liquidity and infrastructure.
Separately, Galaxy Digital has announced plans to launch a pioneering crypto hedge fund in the first quarter of 2025, with $100 million already secured in commitments from family offices and institutional investors. The fund will employ a hybrid strategy, allocating up to 30% of its assets directly to cryptocurrencies like Bitcoin and Ethereum, while the remaining 70% will target financial sector stocks—such as banks, payment processors, and fintech innovators—that are influenced by crypto technology and regulation.
This dual approach by Galaxy Digital underscores a strategic shift towards more sophisticated, risk-managed investment vehicles. The firm's investment in DeFi Technologies focuses on bolstering digital asset service platforms, while the hedge fund aims to create a bridge between volatile digital assets and established financial markets. Analysts view these moves as a maturation signal for the crypto sector, enabled by a clearer regulatory environment including the SEC's updated custody rules and the EU's MiCA framework.
