Novogratz Increases Stake in Galaxy in Wake of Meltdown

(Bloomberg) -- Michael Novogratz is putting more of his money where his mouth is when it comes to cryptocurrencies.

The founder and chief executive officer of Galaxy Digital Holdings Ltd., acquired 7.5 million ordinary shares of the TSX Venture Exchange registered company for C$7.42 million ($5.5 million), representing about 2.7 percent of issued and outstanding ordinary shares, according to statement Wednesday. He controls almost 80 percent of the stock.

Galaxy Digital, which is headquartered in New York, made its debut in August after a merger with a shell company listed on the Toronto junior exchange via a reverse takeover. A U.S. initial public offering would have required at least two years of audited financials, which Galaxy doesn’t yet have, Novogratz said earlier.

Shares of Galaxy Digital rose 36 percent to C$1.40 as of 3:19 p.m. The shares fell 19 percent in 2018 while prices in the digital asset market collapsed.

• Prior to purchase, Novogratz beneficially owned 213.7 million Class B limited partnership units, representing about 76.6% of ordinary shares assuming conversion
• Following purchase, Novogratz owns & controls 221.2 million ordinary shares, representing about 79.3% of ordinary shares assuming conversion

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