Galaxy Digital Looks To Raise $500 Million To Accelerate Growth
Galaxy Digital is looking to raise $500 million in an exchangeable senior note offering. Founded by Mike Novogratz in January 2018, the firm plans to use the funds to “accelerate growth initiatives across its business lines.”
The investment firm Galaxy Digital announced plans to raise $500 million via an exchangeable senior note offering. The funds will be targeted to continue expanding the business. The company explains that the private placement will close in early December 2021 and will be subject to Toronto Stock Exchange (TSX) approval. Notes will only be sold to persons who qualify as “institutional buyers.”
The announcement explains:
“Galaxy Digital has agreed to issue and sell $500 million aggregate principal amount of 3.00% exchangeable senior notes due 2026 to certain purchasers, including affiliates of Arca, NZ Funds, Senator Investment Group and XN, in a private placement under the Securities Act of 1933.
Galaxy Digital intends to use the proceeds from the Notes offering to accelerate growth initiatives across its business lines and for general corporate purposes.”
Galaxy Raised $325 Million in October
Last month, Galaxy Digital raised $325 million for its Galaxy Interactive Fund, which is focused on the fast-growing crypto games and arts space.
According to Sam Englebardt, a general partner at Galaxy, at that time that the move aimed to cater to “young people moving en masse to digital.” The fund has already deployed $150 million in Mythical Games and the fractionalized art project Master Works.
Galaxy Digital launched another fund this summer focused on the decentralized finance (DeFi) sector too. Called the Bloomberg Galaxy DeFi Index, the fund offers professional investors exposure to blue-chip DeFi tokens like SushiSwap, Aave, Maker, Yearn, Uniswap, Compound, and others.
The speed at which Mike Novogratz’s firm is raising and deploying capital is yet more evidence that the crypto industry – and especially the institutional interest in it – is more booming than ever.
