Ex-fund manager and billionaire investor – Mike Novogratz is planning to launch the first-of-its-king merchant bank which have its focus on blockchain related ventures and cryptocurrencies. Novogratz, the Chairman and CEO of Galaxy Investment Partners, had earlier planned for a $500 million Bitcoin-hedge fund but scrapped of the plans at the end of 2017 citing market volatility.
However, it is not ‘all quits’ for Novogratz as he has already unveiled the planned for a cryptocurrency merchant bank, which Bloomberg refers by saying as the Goldman Sachs of the crypto ecosystem, and is betting a whopping $400 million worth of cryptocurrency assets on this ambitious project. The report from Bloomberg stated: “Novogratz is putting substantially all of his crypto investments into Galaxy — about $400 million of bitcoin, ether, initial coin offerings and stakes in startups such as Xapo, Bitstamp, and Ripple Labs.”
Galaxy Digital: Canada-Based Launch via Bradmer Partnership
“Galaxy Digital Holding will serve as the merchant bank, built in partnership with Canada-based Bradmer Pharmaceuticals. On January 9, 2017, Bradmer Pharmaceuticals announced in a press release: ‘Galaxy Digital, First Coin, and Bradmer Pharmaceuticals Announce Business Combination and Establishment of Blockchain, Digital Asset and Cryptocurrency Platform.'”
These three entities will collaborate to form a merchant bank and list it on the Canadian electronic trading platform — the TSX Venture Exchange. The announcement stated that Mr. Novogratz will serve as the initial Chairman of Bradmer’s board of directors. Additionally, the board will establish committees with charters and memberships aligned with TSX-V requirements.
Further, the press release states that the Galaxy Digital merchant bank will be active in four areas of operations which include Trading, third-party Asset Management, Principal Investments like Initial Coin Offerings and Advisory, with First Coin.
Moreover, the the bank will also leverage its deep ties with the Ethereum, Bitcoin and other communities in order to drive handsome retire from the above operation business segments.
The companies plan to complete most legal procedures and regulatory formalities by the end of the first quarter using the reverse-takeover technique (RTO) to avoid the high costs of Initial Public Offerings. They also intend to finalize their arrangement with Digital Galaxy under the laws of the Cayman Islands.