Galaxy Digital Looking to Buy More Crypto Bankruptcy Assets After Deal to Sell FTX's Coins: FT

Mike Novogratz's firm is also interested in companies FTX invested in as a venture capital provider.

AccessTimeIconDec 18, 2023 at 4:54 p.m. UTC
Updated Mar 8, 2024 at 6:48 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Galaxy Digital (GLXY), the cryptocurrency financial services firm headed by Mike Novogratz, is looking to buy more assets from bankrupt crypto companies after securing a deal to sell bitcoin and ether owned by crypto exchange FTX on behalf of the estate's management, the Financial Times reported.

That deal, from August, tripled Galaxy's assets under management to $5.3 billion, according to the FT. Galaxy subsequently also received court approval to sell FTX's shares of Grayscale and Bitwise investment funds.

Galaxy's global head of asset management, Steve Kurz, told the FT it is looking to repeat the experience with other bankrupt companies. That includes firms FTX invested in as a venture capital provider. In December last year, the New York-based company won an auction to buy self-custody platform GK8 from bankrupt crypto lender Celsius Network.

"We have a crypto venture team that has been investing off our balance sheet for five years," Kurz said, according to the newspaper. "The record that we have on that side of our asset management business means we'd be a good candidate for something like that."

The company, whose Toronto-traded shares lost about 80% last year, has applied for a spot bitcoin exchange-traded fund (ETF) with Invesco. In April, it said it was teaming up with asset manager DWS to develop exchange-traded products (ETPs) in Europe.

Edited by Stephen Alpher.


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.

Sheldon Reback

Sheldon Reback is a CoinDesk news editor based in London. He owns a small amount of ether.


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.