Galaxy Digital’s Entertainment Arm Raises $325M Fund for NFT, Gaming Bets

Galaxy Interactive has already showered about $150 million on projects such as Art Blocks.

AccessTimeIconOct 20, 2021 at 12:16 a.m. UTC
Updated May 11, 2023 at 3:58 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Galaxy Digital re-stocked its crypto-culture war chest earlier this year with a $325 million venture fund focused on digital entertainment.

The fund, from Galaxy Interactive, which scouts gaming and arts startups for Mike Novogratz’s crypto conglomerate, has been investing in projects such as Art Blocks for months now, General Partner Sam Englebardt told CoinDesk.

“What would you invest in if you believe that the younger generations, in particular, are moving en masse from the physical to the digital world?” Englebardt said in an interview, noting that Galaxy Interactive has showered $150 million on projects accordingly.

If non-fungible tokens (NFTs) and other crypto tech are to form the backbone of this coming metaverse, then Galaxy wants its share of the spine. The same goes for gaming, blockchain or no.

Englebardt was hesitant to label Galaxy Interactive’s strategy a “metaverse” play, however. The term, which refers to virtual worlds users can interact with, is fast becoming a buzzword. He called it “confusing,” in part because it is growing increasingly ill-defined.

Full immersion virtual worlds a la “Ready Player One” – a true metaverse – aren’t yet achievable. Even so, technologies today are already blurring the boundaries between physical and digital, creating a mixed world.

“We’re investing in a lot of technologies and businesses that we think are going to be instrumental to evolving us from this weaker concept of the metaverse to the much, much deeper, more philosophically interesting idea,” Englebardt said.

Gaming is a critical part of Galaxy Interactive’s playbook. It participated in 1047 Studios, the company behind a popular free-to-play shooter title, and Elodie Games, which is building a cross-platform gaming experience. Neither are crypto-first.

High-brow digital art projects have also found Galaxy Interactive’s blessing. Masterworks, a securitized art startup with a $1 billion price tag, is a portfolio company. So is Art Blocks, the super-hot NFT platform for generative art.

The fund has more flexibility than Galaxy Interactive’s 2018 venture. That joint partnership with Block.one had $325 million to spend on projects at least tangentially related to the EOS ecosystem, and only in equity rounds. There are no such bounds on this edition: it is chain-agnostic and can invest in equity or tokens.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Danny Nelson

Danny is CoinDesk's Managing Editor for Data & Tokens. He owns BTC, ETH and SOL.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.