Michael Novogratz

Galaxy Digital CEO: Bitcoin Unlikely to Fall Below $55,000 — ‘That’s the New Floor’

March 16, 2024 Bitcoin.com

German asset manager DWS joins Galaxy to issue euro stablecoin

December 13, 2023 Coin Telegraph

Bitstamp crypto exchange to raise funds for global expansion: Report

August 8, 2023 Coin Telegraph

bitstamp

One of the world’s oldest cryptocurrency exchanges, Bitstamp, is trying to scale its operations with new fundraising advised by Galaxy Digital.

Bitstamp, one of the world’s longest-running cryptocurrency exchanges, is moving forward with its global expansion ambitions, reportedly working to raise new funds to scale operations.

Crypto exchange Bitstamp started the fundraising process in late June, with Michael Novogratz’s Galaxy Digital Holdings acting as an adviser, Bloomberg reported on Aug. 7.

The firm plans to use the raised capital to launch derivatives trading in Europe in 2024 and expand several of its served markets in Asia. Bitstamp is also looking to scale its services in the United Kingdom, the report notes.

Bitstamp’s global CEO Jean-Baptiste Graftieaux reportedly said that the company is now exclusively focused on raising money to expand the services to retail and institutional crypto clients. He added:

“Bitstamp is not for sale, and we are not actively looking to sell the company.”

The crypto exchange did not immediately respond to Cointelegraph’s request for comment.

The news comes a few months after major blockchain firm Ripple acquired a minority stake in Bitstamp in the first quarter of 2023. Novogratz’s Galaxy also acted as an adviser on the deal, which was publicly announced in late May.

Bitstamp’s latest efforts to scale its business come in line with its global expansion plans announced in 2018 when the firm was acquired by South Korean NXC-backed NXMH.

Back then, Bitstamp co-founder Nejc Kodrič claimed that he and another Bitstamp co-founder, Damijan Merlak, “were not looking to sell” and “were definitely not looking for investment’ because they “didn’t need to raise the capital.” However, Kodrič still took the opportunity to cash out on most of his Bitstamp stock while keeping 10% and remaining CEO.

Founded in 2011 in Slovenia, Luxembourg-based Bitstamp was once a major venue for Bitcoin (BTC) trading, serving as an option to then-dominant Bitcoin exchange Mt. Gox. Bitstamp is now one of the world’s largest crypto exchanges, with about $127 million in trading volume in a recent 24-hour period, according to data from CoinGecko.

In June, Bitstamp’s U.K. arm joined the list of registered firms under the country’s Financial Conduct Authority.

Magazine: Hall of Flame: Wolf Of All Streets worries about a world where Bitcoin hits $1M

Bankrupt Celsius to spend $24M from GK8 sale on legal expenses

July 18, 2023 Coin Telegraph

Celsius

After buying GK8 for $115 million in 2021, Celsius is selling it for $25 million, spending 96% of the sale proceeds on legal fees.

Bankrupt cryptocurrency lending firm Celsius has requested the court to grant relief in the motion related to the distribution of funds from its sale of the self-custody platform GK8.

The Celsius Network’s debtors on July 17 submitted a filing stating that its Series B holders have agreed on a settlement to distribute $25 million from the proceeds of GK8’s sale.

The agreement was reached between debtors, the creditors’ committee and the initial consenting Series B preferred holders.

According to the document, the shareholders proposed allocating $24 million for legal expenses and the remaining $1 million to be distributed among the holders.

“In light of the fact that the primary purpose of the settlement is to reduce administrative costs, the debtors agreed to and remain supportive of the proposed allocation, which provides the initial consenting Series B holders with reciprocal benefits,” the filing reads.

According to the court document, the settlement agreement was borne out of the “mutual desire” to avoid costly litigation and a lengthy confirmation process with a corresponding increase in professional fees. The filing notes:

“The settlement not only unlocks tremendous value for the debtors’ creditors but also affords the debtors and all parties priceless certainty of the way forward. For the reasons set forth herein and the motion, the court should overrule the objections and grant the relief requested in the motion.”

As previously reported, Celsius acquired the Israeli self-custody startup GK8 in late 2021 for $115 million. The troubled crypto lender was soon forced to sell GK8 as part of its restructuring plan following Celsius’ collapse in 2022.

In late 2022, Mike Novogratz-led investment firm Galaxy Digital won the bidding to buy GK8. As part of the acquisition, Galaxy acquired GK8’s team consisting of 40 experts, including cryptographers and blockchain engineers, alongside an office in Tel Aviv. In July 2023, GK8 hosted a meeting with financial executives in its New York offices.

We were thrilled to host in our NYC offices top executives representing the biggest financial institutions in the USA who are in charge of trillions of dollars and leading the future of digital assets.#NYC #digitalassets #Tokenization #blockchaintech pic.twitter.com/DEte55oavP
— GK8 (@GK8_Security) July 17, 2023

The news comes as Celsius tackles a series of legal issues in mid-July. On July 13, the United States Securities and Exchange Commission filed a lawsuit against Celsius, which accompanies reports on the arrest of the former CEO Alex Mashinsky. The U.S. Federal Trade Commission also issued a $4.7-billion fine against Celsius the same day.

Mashinsky pleaded not guilty to charges of misleading customers and inflating the CEL token, and was subsequently released on bail of $40 million.

Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

Mike Novogratz Warns of Credit Crunch in US and Globally — Expects Fed to Cut Rates ‘Sooner Than We Think’

March 19, 2023 Bitcoin.com

Mike Novogratz Says Bitcoin Could Return to $30,000 Next Month

February 17, 2023 Bitcoin.com

Argo Blockchain sells top mining facility to Galaxy Digital for $65M

December 28, 2022 Coin Telegraph

Argo Blockchain sells top mining facility to Galaxy Digital for M

Coin Telegraph

Argo Blockchain reduces its total debt by $41 million by selling its flagship Helios mining facility and getting a $35 million loan from Galaxy.

Cryptocurrency mining firm Argo Blockchain has taken a difficult decision to sell its flagship mining facility Helios in order to survive the ongoing bear market.

Argo Blockchain CEO Peter Wall officially announced on Dec. 28 a deal with Mike Novogratz’s crypto investment firm Galaxy Digital to sell Helios facility for $65 million. Argo has already been cashing its mined Bitcoin (BTC) to reduce the loan to Galaxy.

Additionally, Galaxy will also provide Argo with a new $35 million equipment finance loan to help the troubled miner reduce its debt. “We’ve used the proceeds of that sale in a new Galaxy loan to pay off the debt that we owed to NYDIG and a tiny bit to another secured lender,” Wall noted.

The new transactions aim to reduce Argo’s total debt by $41 million, improve liquidity and operating structure, allowing the firm to continue its mining operations, the CEO said.

Wall noted that the deal was the “only viable path forward” through the bear market, amid pressure from high energy costs coupled with the low Bitcoin price.

The CEO also emphasized that despite Argo selling Helios, the firm has not sold any of its mining machines. “Those are going to continue to mine at Helios facility,” Wall said, adding that Argo has also signed an agreement to keep running their mining machines at Helios. He stated:

“Staying at Helios will also allow us to continue to access power through the Texas grid and participate in the ancillary services, which are provided by Ercot.”

The deal comes just six months after Argo officially launched Helios in May 2022. Located in Dickens County, Helios facility is the largest Argo’s mining facility, supporting 200 megawatts (MW) of electricity. In comparison, another Argo’s facility, Baie Comeau, operates around 15 MW.

The news comes amid Argo struggling to secure financing after failing to raise $27 million via subscription for ordinary shares. In October, Argo said that it was at risk of closing due to failing to raise new financing. In mid-December, Argo announced that it was negotiating to sell its assets and trying to “engage in an equipment financing transaction” in order to avoid filing for bankruptcy.

Argo did not immediately respond to Cointelegraph’s request for comment.

Galaxy Digital Reveals Update on Ties to FTX, Partnership Has ‘Exposure of Approximately $76.8 Million’

November 9, 2022 Bitcoin.com

BitGo sues Galaxy Digital for acquisition breach, seeks $100M in damages

September 13, 2022 Coin Telegraph

BitGo

BitGo has accused Galaxy of “improper repudiation” and “intentional breach” of the merger in a lawsuit filed with Delaware Chancery Court.

Digital asset custodian BitGo has filed a lawsuit against Mike Novogratz’s cryptocurrency investment firm Galaxy Digital for terminating the former's acquisition.

BitGo took to Twitter on Tuesday to disclose details of its lawsuit against Galaxy after the latter terminated the $1.2 billion acquisition deal with BitGo in mid-August.

Filed on Monday, the lawsuit seeks more than $100 million in damages, accusing Galaxy of “improper repudiation” and “intentional breach” of its acquisition agreement with BitGo, the firm said.

BitGo said they filed the lawsuit with Delaware Chancery Court, stressing that the court documents are expected to become public on Thursday evening. That is in “an abundance of caution” in the event Galaxy wants to “redact some of the allegations before the complaint becomes public,” BitGo noted in a tweet.

As previously reported, Galaxy terminated the BitGo acquisition on Aug. 15. The company argued that it exercised its right to drop the deal in line with the merger agreement after BitGo failed to deliver audited financial statements for 2021.

Galaxy CEO Novogratz said that it was still pursuing its path to the United States listing on Nasdaq. Galaxy also stated that they plan to vigorously defend the firm in a potential case as Galaxy believed that BitGo’s claims were “without merit.”

Both BitGo and Galaxy declined to provide additional comments regarding the lawsuit to Cointelegraph.

The news comes amid BitGo continuing to develop more products and services. The company on Tuesday announced the launch of its Wealth Management platform, aiming to allow registered investment advisors and broker-dealers to have direct access to digital assets.

Founded in 2013, BitGo is a major global digital currency firm focusing exclusively on serving institutional clients, providing custody, liquidity, and security solutions. Last year, the firm reported over $64 billion in assets under custody.

Argo Blockchain keeps cashing out BTC to pay the debt to Galaxy Digital

August 5, 2022 Coin Telegraph

Bitcoin mining

After selling 887 Bitcoin in July, Argo cut its outstanding balance under the BTC-backed loan to just $6.72 million.

Cryptocurrency mining firm Argo Blockchain continues to sell its Bitcoin (BTC) holdings to cut its debt to Michael Novogratz’s crypto investment firm Galaxy Digital.

Argo sold another 887 Bitcoin in July to reduce obligations under a BTC-backed loan agreement with Galaxy Digital, the firm announced on Friday.

With the average BTC price of $22,670, the sales totaled $20.1 million, accounting for a significant part of the maximum outstanding loan balance of $50 million in Q2 2022. As of July 31, 2022, Argo held an outstanding balance of just $6.72 million under the BTC-backed loan, the announcement notes.

The latest sale comes shortly after Argo sold another 637 BTC in June 2022 for $15.6 million. The firm reported that by the end of June 30, Argo had an outstanding balance of $22 million on the loan.

Despite actively cashing out its Bitcoin over the past few months, Argo still holds a notable stash of Bitcoin. As of July 31, 2022, Argo held a total of 1,295 BTC, with 227 of those represented by BTC equivalents.

In the latest operational update, Argo also mentioned that the company significantly increased its mining volumes in July. During the month of July, Argo mined 219 BTC or BTC equivalents, compared to 179 BTC in the previous month. Based on daily foreign exchange rates and cryptocurrency prices during the month, mining revenue in July amounted to $4.73 million, while revenues in June amounted to $4.35 million.

Focused on cryptocurrency mining, the Argo blockchain firm is a public company listed on Nasdaq and the London Stock Exchange. Argo is one of many crypto mining companies that opted to sell self-mined bitcoins amid the bear market of 2022, including firms like Bitfarms, Core Scientific and Riot Blockchain.

In contrast, crypto mining firms like Marathon, Hut 8 and Hive Blockchain Technologies have still preferred to stick with a long-standing HODL strategy despite extreme market conditions.

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