Galaxy Digital's $175M Crypto Fund
Galaxy Digital Secures $175 Million for New Venture Fund
Galaxy Digital, recently listed on Nasdaq, has announced the successful close of its first externally-backed venture fund, raising $175 million. This surpasses their initial target of $150 million and signals a significant investment in the future of cryptocurrency.
Key Investment Areas
- Stablecoin Infrastructure: Supporting the development and security of stablecoins.
- Decentralized Finance (DeFi): Investing in innovative DeFi applications.
- Practical Blockchain Applications: Focusing on projects with tangible real-world use cases.
Mike Giampapa, general partner at Galaxy, highlights the fund's strategic focus on projects demonstrating practical applications, representing a shift towards tangible utility within the crypto space. Galaxy, known for its internal investments in crypto startups, is now leveraging external capital to expand its venture portfolio and bridge the gap between traditional finance and the cryptocurrency ecosystem.
Fund Structure and Deployment
Galaxy Digital serves as both general partner and limited partner in the fund. Other participants include institutional investors, family offices, and fund-of-funds connected to its asset management arm. The fund reached an initial close of $113 million in July 2024 and has already deployed $50 million into promising companies such as Monad and Ethena.
Mike Novogratz, CEO of Galaxy Digital, sees this fund as a crucial component of Galaxy's US market expansion strategy. The company’s broader investment strategy also encompasses artificial intelligence, aligning with Novogratz's vision for long-term growth in these cutting-edge technologies. Furthermore, Galaxy is exploring tokenization of its own equity, working with the SEC to explore its integration into DeFi platforms.
Galaxy Digital's Track Record and Future
Founded in 2018, Galaxy Digital has steadily broadened its reach, encompassing asset management, proprietary trading, crypto mining, and ETFs. Despite challenges including losses from the Luna stablecoin collapse and a $295 million net loss in Q1 2025, the company reported approximately $7 billion in assets under management (AUM) as of May 2025. Its Nasdaq debut (GLXY) in mid-May 2025 was met with strong market reception.
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