Galaxy Digital on the Hunt for More Crypto Bankruptcy Assets Post-FTX Deal
Galaxy Digital, the cryptocurrency group led by US billionaire Mike Novogratz, is seeking additional asset sales from bankrupt digital asset companies following a successful deal that involved selling coins held by FTX.
The transaction has significantly increased Galaxy’s funds under management, tripling the figure from $1.7 billion a year ago to $5.3 billion currently, according to the company’s statement to the Financial Times .
Galaxy Digital was chosen by administrators of the collapsed crypto exchange in August to manage the sale, hedging, and staking of FTX’s Bitcoin (BTC) and Ethereum (ETH) coins, as well as its holdings of Grayscale’s Bitcoin trust.
The win has been a positive development for Galaxy, as the company has been grappling with the aftermath of last year’s crypto market crash, recording a $94 million loss in the third quarter of this year.
The asset management arm of Galaxy has been gradually selling FTX’s tokens on the open market in an effort to help the failed exchange’s administrators recover the value of assets and repay creditors.
A US court ruling in September stipulated that FTX assets could be sold in lots of $100 million per week, with the condition that the sales should not disrupt market prices or alert other traders.
Steve Kurz, the global head of asset management at Galaxy, expressed interest in acquiring the assets of other bankrupt companies, citing FTX’s extensive venture capital portfolio of real estate and technology firms as potential targets.
FTX’s venture portfolio includes a stake in artificial intelligence start-up Anthropic, which was valued at nearly $5 billion in a recent funding round.
Galaxy Digital’s successful handling of the FTX mandate has positioned the
