Crypto bank of Michael Novogratz stumbled on its day 1, costed 20% loss
Galaxy Digital, a NYC-based multi-strategy investment firm focused on digital assets and blockchain technology, stumbled soon after its entry in the crypto market on 1st August. The stumble costed Galaxy Digital a 20% dip in each of its share in a mere span of a day.
How bad was the start of the crypto bank of Michael Novogratz?
The stock opened at CAD $2.75 on the Toronto’s TSX Venture Exchange, using the ticker GLXY. The dip totalled an estimated loss of about $134 million in the first quarter of 2018 amidst an all-over depression in the crypto market, reported Bitcoinist.com.
The drop in share prices came in only within a day of Galaxy Digital getting listed on the Toronto Stock Exchange. Michael Novogratz, the CEO of Galaxy Investment Partners has been facing hiccups since January when he was actually trying to launch of the bank. The bank started selling shares at the time when cryptocurrencies were sold at a high price.
Regulators from Canada held the company from getting listed for eight long months. During the time, Bitcoin lost almost half of its value.
Novogratz does not regret his decision and is hopeful about his bank’s future
In an interview with BNN Bloomberg, in Toronto, the former Goldman Sachs macro trader, Novogratz, said: “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.”
In a statement made to CNBC last November, Novogratz estimated that Bitcoin has chances of “easily” reaching $40,000 by the end of the current year. So, when mentioned in the interview, “But I don’t think it’s a mistake,” cryto users might estimate that he is still holding on to his statement, and therefore, he did not regret his decision and considers that he took the right move.
I don’t see $btc dominance pulling back any time soon. Lots of cool institutional projects coming and most will start with bitcoin. Stay long.
— Michael Novogratz (@novogratz) July 31, 2018
Novogratz said he sees a bright future for Galaxy and he has plans for Galaxy to be “globally traded” in Hong Kong, Frankfurt and London.
Image via Shutterstock
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