Galaxy Digital is one of the largest crypto-native financial services companies in the world, positioned as the Goldman Sachs of digital assets. Founded by former Goldman Sachs and Fortress Investment Group partner Mike Novogratz in 2018, Galaxy offers institutional-grade trading, lending, asset management, investment banking advisory, and Bitcoin mining services. It is publicly traded on the Toronto Stock Exchange (TSX: GLXY) and has been a key bridge between traditional institutional capital and digital assets.
Founding and History
Novogratz founded Galaxy Digital LP in late 2017 / early 2018, raising initial capital from family offices and institutional investors. The company went public on the Toronto Stock Exchange in August 2018 via a reverse takeover, raising $250 million. Galaxy applied for a US listing (Nasdaq) but faced sustained delays from the SEC; as of 2024, it continued to trade primarily in Canada.
Business Segments
The following sections cover this in detail.
Trading
Asset Management
- Galaxy Bitcoin Fund — largest non-US exchange-listed Bitcoin fund by AUM historically
- Galaxy Crypto Index Fund
- Galaxy Ventures — early-stage crypto startup investments
- Galaxy EOS Ecosystem Fund (co-invested with Block.one in EOS ecosystem)
Galaxy co-launched BTCO (Bitcoin ETF on TSX) in 2021 — one of the world’s first Bitcoin ETFs. After the US SEC approved spot Bitcoin ETFs in January 2024, Galaxy partnered with Invesco to manage the BTCO Bitcoin ETF for US markets.
Investment Banking
- Advising Yuga Labs (BAYC parent) on strategic matters
- Advising on multiple DeFi protocol acquisitions
- Fundraising advisory for early-stage crypto companies
Mining
The LUNA Episode
Novogratz suffered a publicly documented loss during the Terra/LUNA collapse in May 2022. He had been a prominent LUNA promoter and investor, managing a position Galaxy disclosed at $555 million that fell to approximately $200 million. Galaxy’s total losses from the LUNA collapse were reported at $272 million in the Q1 2022 earnings. Novogratz had also tattooed “LUNA” on his arm in January 2022 — the tattoo became a widely shared symbol of the speculative excess of the era.
Despite the losses, Galaxy survived because it maintained relatively conservative leverage compared to Celsius or 3AC.
Financial Performance
| Year | Revenue | Net Income/Loss |
|---|---|---|
| 2021 | $1.69B | $1.6B profit |
| 2022 | n/a | ~$1.6B loss |
| 2023 | ~$360M | ~$128M profit |
| 2024 | n/a | Recovery year |
US Listing Progress
Galaxy filed for a Nasdaq listing in 2021 but was repeatedly delayed by SEC scrutiny. The company undertook a corporate restructuring in 2024 to redomicile under Delaware law, expected to facilitate eventual US listing.
Related Terms
Sources
- Novogratz, M. (2021). “Galaxy Digital 2021 Annual Report.” Galaxy Digital Holdings.
- Galaxy Digital Q1 2022 Earnings (2022).
- TSX Venture Exchange Filing (2023). Galaxy Digital Holdings — Argo Blockchain Helios Acquisition.
- Invesco Galaxy BTCO Bitcoin ETF Prospectus (2024). SEC.
- Messari Galaxy Digital Research Report (2023).