- Famed hedge funder turned cryptocurrency enthusiast Mike Novogratz announced Tuesday that he is launching a cryptocurrency bank.
- Bloomberg News reported Novogratz plans to take the entity public on a Canadian venture exchange.
- In December, Novogratz tabled plans for a cryptocurrency-focused hedge fund.
Less than a month after tabling a plan to start a cryptocurrency hedge fund, famed trader Mike Novogratz announced he has a cryptocurrency bank in the works.
In a statement out Tuesday, Novogratz said he is looking to raise $200 million for Galaxy Digital LP, a “best-in-class, full service, institutional quality merchant banking business” for the crypto market. Novogratz also plans to list the company on TSX Venture Exchange, a Canada-based exchange for small cap companies.
A person familiar with the initiative told Bloomberg News that Novogratz “had been laying the groundwork for Galaxy for months.”
The new bank will be born out of Canadian-based First Coin Capital, which Novogratz plans to buy and then merge with Bradmer Pharmaceuticals. Its main businesses will include trading, advisory services, asset management, and private equity-like investing.
“Bradmer, to be renamed Galaxy Digital Holdings, will own an interest in the merchant bank and be listed on the TSX exchange,” Bloomberg’s Erik Schatzker reported. “The person familiar with his plans said Novogratz envisions Galaxy as the Goldman Sachs of crypto.”
That person said Novogratz plans to put his massive $400 million crypto fortune into the bank.
Novogratz has been an outspoken advocate for blockchain technology and cryptocurrencies. The former Fortress trader pumped the brakes on a plan for a $500 million cryptocurrency hedge fund in December.
“We didn’t like market conditions and we wanted to re-evaluate what we’re doing,” Novogratz said of his decision to table the fund on December 22.