The funding comes after the firm increased its net profits by more than ten-fold in the last quarter. Galaxy Digital is a crypto brokerage and merchant bank that was launched by billionaire investor Michael Novogratz. The firm announced on November 29 that it would issue $500 million in exchangeable senior notes to increase the speed of business initiatives.
This debt is convertible into company equity and it bears an interest rate of 3% per year, with maturity in 2026. New expansion areas include the nonfungible tokens (NFTs) with the company committing $62 million of its reserve capital into 22 NFT-related firms since the start of the year.
Over the past several years, Galaxy Digital founder and current CEO Mike Novogratz have been known for his bullish stance on Bitcoin (BTC) and other cryptos. He has repeatedly called on other investors to allocate 1% to 5% of their portfolio to cryptos. Under his guidance, the company’s assets under management exceeded $3 billion in an update offered in October. It became one of the biggest digital currency investment firms globally.Buy Bitcoin Now
Notably, the firm is registered on the Cayman Islands, and its shares are listed wholly on the Canadian Toronto Stock Exchange. Nonetheless, it is in the restructuring process aiming to list its shares in the US in 2022. The United States Securities and Exchange Commission (SEC) is yet to approve its possible listing.
In the last quarter, Galaxy Digital’s net income from trading, investment, cryptocurrency mining, asset management, and other corporate sources reached $517.1 million, rising from $41.5 million the previous year’s quarter. Shares have gained about 405.4% year over year to trade at $23.51 (converted from Canadian dollars) apiece as of November 29.
Galaxy Digital is one of the companies that are leading in the institutional adoption of Bitcoin and cryptos in general.