Given the volatility in the price of cryptocurrencies, billionaire investor Michael Novogratz decided at the end of last year to delay his plans to start a cryptocurrency hedge fund and consequently scrapped it.
Since then, Mike came back with a huge announcement saying that he intends to open a full-service crypto merchant bank. He added that he will invest his entire $400 million worth of crypto assets in this ambitious project.
2018 has seen an explosion in its only second week, as the Canadian company, Bradmer Pharmaceuticals has revealed that they will partner with Mr. Novogratz to create a crypto merchant bank named Galaxy Digital Holding.
Banned against US newswires, the announced official title, Galaxy Digital, First Coin and Bradmer Pharmaceuticals Announce Business Combination and Establishment of Blockchain, Digital Asset and Cryptocurrency Platform and was announced on 9 January 2018, at 08:10 EST.
“The Proposed Transaction will establish Galaxy Digital as a full service, digital assets merchant bank, with distinct trading, asset management, principal investment, and advisory business lines,”
The bank will consist of Bradmer, First Coin Capital Corp., and Galaxy Digital and the plans are to list it on the Canadian electronic trading programme, TSX Venture Exchange. As reported here, Novogratz has decided last year to cancel his plans for his own cryptocurrency hedge fund after Bitcoin experienced a double-digit dip in its value. He explained:
“We didn’t like market conditions, and we wanted to re-evaluate what we’re doing. I look pretty smart pressing the pause button right now.”
In an announcement made today, the famous investor has announced that his personal investing company, Galaxy Digital “has undertaken the transaction to raise primary capital towards building a merchant banking business in the cryptocurrency and blockchain space”.
Mike is one of the few people who already have invested their own money in this business and is not just risking his clients’ financial capital. It is quite easy to risk someone else’s fortune, but it becomes way more different when the fortune you’re risking belongs to you.
Its strategy will be based around trading, principal investments such as ICO, third party asset management and, further than that, with the help of First Coin they are trying to establish an advisory, consulting business.
The company expects to complete most of their legalities and regulatory hurdles by Q1 2018 relying on the popular reverse take-over technique to avoid the high cost of the public’s initial offerings to avioid the high cost of initial public offerings . So what that means is that all the companies will have to sign a new deal within Galaxy Digital under the authority of the legal system that exists in Cayman Islands.
It is expected that Novogratz will be the initial Chairman of the board of Bradmer. Further than that, the board will feature committees with charters and memberships with TSX-V requirements.