Galaxy Digital secures $175 million for first venture fund to back early-stage crypto startups
Key Takeaways
Galaxy Digital raised $175 million for its first externally-backed venture fund concentrating on early-stage crypto startups.
The fund focuses on stablecoins, DeFi, and sensible blockchain purposes, reflecting a shift in the direction of tangible crypto use instances.
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Galaxy Digital, which just lately debuted on Nasdaq, has secured $175 million for its first venture fund that features exterior capital, in accordance to a brand new report from Fortune.
The recent capital, which surpasses Galaxy’s $150 million goal, will probably be used to put money into early-stage crypto startups, notably these targeted on stablecoin infrastructure, DeFi purposes, and sensible blockchain use instances, mentioned Mike Giampapa, basic associate at Galaxy.
Galaxy has lengthy backed crypto startups utilizing its personal stability sheet. With this new fund, it’s bringing in outdoors traders for the first time to increase its footprint in ventures bridging crypto and conventional finance.
Galaxy holds each basic associate and restricted associate roles within the fund. Other members embody institutional traders, household places of work, and fund-of-funds tied to its asset administration enterprise.
The fund reached an preliminary shut of $113 million in July 2024 and has already deployed $50 million into firms reminiscent of Monad and Ethena.
Mike Novogratz’s firm is collaborating within the fund as each basic associate and restricted associate, with further commitments from institutional LPs, together with household places of work and fund-of-funds linked to Galaxy’s asset administration division.
Since its $113 million preliminary shut in July 2024, roughly $50 million has been allotted to early-stage tasks reminiscent of Monad and Ethena, as famous within the report.
Founded in 2018, Galaxy’s mission is to bridge conventional finance and the rising crypto financial system. Over the years, the corporate has expanded into asset administration, proprietary buying and selling, crypto mining, and ETFs.
In early 2024, Galaxy partnered with Invesco to launch a spot Bitcoin ETF, and it’s now exploring a spot Solana ETF.
Despite previous setbacks, together with an enormous loss from its publicity to the failed Luna stablecoin undertaking and a $295 million web loss in Q1 2025 due to falling crypto costs and mining shutdowns, Galaxy stays some of the influential US crypto corporations.
As of May 2025, the corporate reported roughly $7 billion in property beneath administration.
The firm commenced buying and selling on Nasdaq beneath ticker GLXY in mid-May, with shares rising over 15% on its debut day.
Novogratz views US market growth as a strategic precedence. Beyond crypto, Galaxy can be investing in synthetic intelligence, figuring out each sectors as probably the most promising areas for long-term market development.
The firm is additional exploring the tokenization of its personal fairness, partaking with the SEC to probably allow integration of Galaxy inventory into DeFi purposes.
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