Novogratz Raises $201 Million For A Proposed Crypto Bank
Michael Novogratz, a former hedge fund manager, and partner at Goldman Sachs, has already managed to privately raise over $200 million, which will be used to help launch the New York-based crypto bank. Terry Gou, the billionaire chairman and primary shareholder of Foxconn, a large multinational electronics company, is reportedly the newest investor in Michael’s cryptocurrency merchant bank. According to reports, the bank’s services will include facilitating cryptocurrency trading, asset management, and professional consulting regarding blockchain-based initiatives.
On December 22nd, 2017, Novogratz tweeted:
“Galaxy [Digital] is building out a full-fledged crypto merchant bank. I have over 30 percent of my net worth in crypto assets. We have venture bets, ICOs, tokens, investments in funds, mining and advisory. We also trade very actively. We are making a large long-term bet on crypto”.
Mr. Novogratz is the CEO of Galaxy Digital LP and has somehow managed to raise capital for his crypto ventures even during a time when the cryptocurrency market has been reduced to less than half its value since reaching record highs in December 2017. Investors acquired shares in his firm via a holding company, which will start actively trading on Toronto’s TSX Venture Exchange in the foreseeable future. Interestingly, this is all set to happen without having to disclose any financial statements.
Planning To Make A Comeback
News pertaining to Novogratz and his elaborate crypto plan has been circulating for the past few months. According to sources, part of this complex crypto-business process also involved Galaxy’s takeover of First Coin Capital Corp., a relatively small cryptocurrency startup. Galaxy was then supposed to merge with Bradmer Pharmaceuticals Inc. in what’s being referred to as a “reverse takeover”. Bradmer has reportedly secured a minority investment in Galaxy, and now plans to go by the name “Galaxy Digital Holdings”.
Novogratz, who’s now estimated by Forbes to have a “crypto net worth” of up to $1 billion, appears to be making a comeback. Apparently, he has invested all his crypto assets into this merchant bank project. Back in 2007, he made the controversial Forbes billionaires list. However, due to the 2008-2009 Financial Crisis, his net worth was said to have declined sharply. Although the ex-hedge fund manager thinks that the cryptocurrency market will eventually crash, he still intends to make as much money from it as possible.
Multiple Crypto Ventures
On January 23rd, 2018, it was announced that Galaxy Digital LP, which now identifies as a full-service digital assets bank, would partake in a joint venture with Block.one, which builds software for EOS.IO. Together, both parties will invest in projects that will use the EOS.IO blockchain.
Meanwhile, as mentioned earlier, Foxconn’s Terry Gou is yet another prominent investment partner that Mr. Novogratz has recently engaged. However, it remains unknown just how much capital Mr. Gou has invested into this crypto banking project. There’s also no information currently available regarding the specific terms and conditions to which Mr. G0u has committed. All that we know right now is just that the Foxconn chairman has invested “something” into this ambitious project. This news shouldn’t be surprising considering that Foxconn has already been investing in blockchain startups. Notably, HCM International, a subsidiary of Foxconn, invested in a bitcoin remittance company called Abra back in October 2017.
It’s always encouraging to hear about big name companies taking interest in the cryptosphere. Let’s hope that their efforts translate into long-term success.