Cryptocurrency Bank goes public after losing $134 Million in Q1
On the evening of public offering, Mike Novogratz, the CEO of merchant bank namely Galaxy Digital announced its $134 million loss in Q1. This is, indeed, an unusual way of promoting the banking firm at the time of public listing. However, Novogratz may has chosen this measure to bring this cryptocurrency merchant bank in limelight.
As per a report by Bloomberg, on 1st August, 2018 Galaxy Digital LP would get enlisted on TSX Venture Exchange [TSX-V]. Based in Toronto, this exchange provides a platform for the minor companies to get listed. These small companies fail to find place in the listings of Toronto Stock Exchange.
In continuation of that procedure, the merchant banking firm has been compelled to publish the financial report of the first quarter of the year. However, the procrastination was more than what Novogratz expected which took place due to lack of simplicity the listings of reverse takeover. It was also delayed by the regulatory frameworks. The significant range of declination of the cryptocurrency market space has resulted in the loss of $134 million in Q1 of this current year.
Mike Novogratz, the CEO of this merchant bank also happens to be a billionaire investor and ex-manager of a hedge fund. In this context, he has expressed his optimism regarding the progressive prospect of the bank. Novogratz is hopeful that within a span of one year, the banking firm would recover and generate profit. However, he has recently expressed his desire to remain private for a longer period of time.
Statements by Mike Novogratz
In an interview with Bloomberg, Novogratz has commented, “If I knew what I know now, knew the crypto markets were going to swoon as much, and it was going to take so long, I might have stayed private for another year or so and then gone public.” He has further stated, “But I don’t think it’s a mistake.”
The venue of trading of the Galaxy Digital shares is yet unknown. This fact is undeclared at a time when the market would open on Wednesday, i.e., 1st August, 2018. Previously, private placement was made in January, 2018 when the investors at C$5 bought shares.
It is, indeed, not possible to remain valuable throughout. However, the current deficit of the publicly listed cryptocurrency firms can make the investors opt Galaxy Digital as their first choice. This would eventually allow the investors to get an exposure to the newly developing industry.
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Image via Fortune
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