Blockworks

This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Galaxy Digital, Multicoin Capital, and Jump Crypto are <a href="https://www.bloomberg.com/news/articles/2025-08-25/galaxy-jump-multicoin-seek-1-billion-for-buying-solana-token?embedded-checkout=true">seeking to raise</a> $1 billion to acquire Solana (SOL). If successful, the effort would establish the largest corporate treasury dedicated to the token to date.



According to Bloomberg, the three firms plan to acquire a publicly traded company and convert it into a dedicated digital asset treasury vehicle, with Cantor Fitzgerald serving as lead banker.&nbsp;



The initiative, which has reportedly received support from the Solana Foundation, is expected to close in early September 2025.



Announced on the same day, Sharps Technology <a href="https://www.prnewswire.com/news-releases/sharps-technology-inc-announces-over-400-million-private-placement-seeking-to-establish-the-largest-solana-digital-asset-treasury-strategy-302537587.html">said</a> it priced an over-$400 million private placement aimed at building its own Solana-focused treasury strategy. The Nasdaq-listed company said the plan would involve purchasing SOL both on the open market and directly from the Solana Foundation at a discount.



Investors in the Sharps placement include ParaFi, Pantera, FalconX, Republic Digital, CoinFund, Arrington Capital and other digital asset institutions. The transaction is scheduled to close later in August, subject to customary conditions.



Combined, the two efforts represent a potential $1.4 billion influx into Solana markets, significantly larger than existing treasuries held by companies such as Upexi — worth close to $400 million at current prices — and DeFi Development Corporation, valued near $240 million.



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<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Galaxy

Galaxy, Jump, and Multicoin align on $1B Solana treasury initiative

Katherine Ross

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Is Galaxy really a strong buy?&nbsp;



That was the deep dive in <a href="https://www.youtube.com/watch?v=cNLFPx0m2I8">today’s Empire episode</a> with Duncan from Flood Capital and Matt from Rittenhouse Research, which rated Galaxy a strong buy in a recent research note. 



Both Duncan and Matt made their <a href="https://blockworks.co/podcast/empire/c2d367ac-6f1c-11f0-821d-53761026ec5f">bullish cases for Galaxy</a> in Empire today, highlighting it as one of the more successful crypto firms. But before we dive in, I want to note that Empire co-host Jason Yanowitz and both Matt and Duncan all disclosed they hold GLXY.&nbsp;



“ I basically break down Galaxy into three main buckets. They have their balance sheet, so the market cap today it&#8217;s trading around. You know, just under 28 bucks. So that&#8217;s around a $10 billion market cap. And they have a crypto balance sheet, which consists of, as of March 31st, $1.3 billion in Bitcoin,” Flood Capital’s Duncan noted.



Matt from Rittenhouse took more of a look at the businesses within Galaxy: “There&#8217;s a lot of strategic value in the digital assets business of Galaxy, just because they&#8217;re the only full platform that has this comprehensive set of offerings that&#8217;s tailored specifically for institutions and companies operating within the crypto ecosystem.”



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Rittenhouse Research is long Galaxy Digital <a href="https://twitter.com/search?q=%24GLXY&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$GLXY</a> <a href="https://twitter.com/search?q=%24BRPHF&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BRPHF</a> We believe Galaxy&#39;s flagship data center Helios will generate $1.7B of EBITDA and $32B of equity value in the near-term, w/ significant further upside. Our full thesis can be found via PDF here: <a href="https://t.co/mZ3JwW1CYD">https://t.co/mZ3JwW1CYD</a> <a href="https://t.co/4jNHn10oYV">pic.twitter.com/4jNHn10oYV</a>&mdash; Rittenhouse Research (@RHouseResearch) <a href="https://twitter.com/RHouseResearch/status/1923076150693187726?ref_src=twsrc%5Etfw">May 15, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



If you need a comparison to a traditional firm, Duncan said it’s most like Goldman Sachs.&nbsp;



“They&#8217;ve won really big contracts — being kind of like the Goldman in the room, the adult in the room — like the whole FTX estate deal, right?” Duncan noted. “They were in charge of custodying those assets. They have over $3 billion in staked assets, which I think this is gonna [pick] up a lot in the next few quarters with all these treasury plays. They&#8217;re the fourth-largest validator in Solana,” Duncan said.&nbsp;



And then there’s the trading business, which is also quite large when compared to other crypto firms. 



<iframe loading="lazy" width="560" height="315" src="https://www.youtube.com/embed/cNLFPx0m2I8?si=lfgM6am4qQVshf4X" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>







“So derivatives, lending, trading, structured products. [From] the last quarter, so I think probably March 31st, [it had] nearly a $900 million loan book. So that&#8217;s like the second or third largest CFI lender in all of crypto,” he continued.&nbsp;



Meanwhile, Rittenhouse believes that Galaxy is also a strong way to play the AI data center from the bitcoin mining pivot.&nbsp;



“Galaxy is the most attractive way to play the &#8216;Bitcoin miner pivoting to AI data center operator&#8217; investment thesis,” the note said. “Galaxy benefits strongly from the fact its Bitcoin mining operations were never a material part of its operating business.”



The stock, prior to market open, is trading around $27, up 181% over the past year. And there could be more room for it to run.&nbsp;



“ I think it could be worth like a hundred dollars a share in the next few years. So that&#8217;s personally how I&#8217;m thinking about it. It&#8217;s definitely a long-term investment. I think as they execute on the data center business, if they continue to execute there, then like, I&#8217;m really happy to hold this for a very long time,” Duncan said.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><a href="https://twitter.com/search?q=%24GLXY&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$GLXY</a> is my largest position, take a minute to read why, I think $100/share is on the table in the next few years and there is ample liquidity to size into this. Here is a short summary of why I believe <a href="https://twitter.com/search?q=%24GLXY&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$GLXY</a> is such a sleeper and significantly undervalued/misunderstood by the… <a href="https://t.co/gAkkGqqpTr">pic.twitter.com/gAkkGqqpTr</a>&mdash; Duncan (@FloodCapital) <a href="https://twitter.com/FloodCapital/status/1945176853305606343?ref_src=twsrc%5Etfw">July 15, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



But if you want to boil down the stock price to just what it should be at today, then that would be roughly $55, per Duncan’s analysis.&nbsp;



“ There could be other kinds of green shoots of positive surprises where something in their crypto business allows &#8217;em to make an acquisition or do a joint venture that adds like a ton of value to the company long term,” Matt noted.&nbsp;



Galaxy’s set to report earnings tomorrow, so we’ll have to see whether the bull cases stand.



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<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Empire Newsletter

Galaxy’s broad crypto strategy covers key ‘buckets’: Flood Capital

Ben Strack

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forward-guidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Given the recent GENIUS Act signing and certain firms soon reporting Q2 earnings, it’s as good a time as any for a crypto stock update.&nbsp;



After the stablecoin-focused bill became law, Compass Point analysts downgraded Circle stock from neutral to sell.



Their CRCL price target declined from $205 to $130, according to a Monday note.&nbsp;&nbsp;



Analysts Ed Engel and Abdullah Dilawar anticipated the rally leading up to the <a href="https://blockworks.co/news/genius-act-passes-house">GENIUS Act signing</a>, but predicted the “sell-the-news” drop that came. Shares of CRCL were trading around $195 at 1:30 p.m. ET — down 14% in the last five days.



Competing stablecoins products from traditional banks and fintechs will also put pressure on CRCL’s premium valuation, they argued.&nbsp;



While CRCL&#8217;s $53 billion market cap (when the note was published) implied long-term expectations of ~25% market share and ~30% EBITDA margins, the $130 price target assumes 15% longer-term market share and 20% EBITDA margins.



Circle is set to report its second quarter earnings during an Aug. 12 webcast.



Moving on, Jefferies kicked off its coverage of Galaxy Digital on Tuesday with a buy rating and a $35 price target. I missed this while in court at the <a href="https://blockworks.co/news/roman-storm-government-may-rest-case">Roman Storm trial</a>.



GLXY’s stock price was just above $30 at 1:30 p.m. ET — up about 12% this week.&nbsp;&nbsp;



Being a “comprehensive provider for institutions seeking digital asset exposure” gives Galaxy an edge over more specialized peers like prime brokerage FalconX, liquidity provider Cumberland, market maker Wintermute and bitcoin-focused firm NYDIG, Jefferies analysts argue.&nbsp;



The GENIUS Act could open up new stablecoin-related business opportunities (like custody or issuance partnerships), they added. <a href="https://blockworks.co/news/us-house-passes-clarity-act">The CLARITY Act</a> would likely contribute to “incremental” revenue opps as institutional players enter the segment.



Beyond that, roughly two-thirds of Galaxy’s enterprise value stems from its data center business, according to Jefferies. The company bought Argo Blockchain’s Helios mining facility in 2022 and is hosting CoreWeave AI and HPC operations there.



We’ll be listening to what Mike Novogratz has to say during Galaxy’s Aug. 5 earnings call.&nbsp;



Before Circle and Galaxy report their earnings next month, Coinbase will share its Q2 results on July 31.&nbsp;



Compass Point analysts, in a July 16 note, increased their Coinbase price target from $195 to $330 (COIN shares traded for ~$395 this afternoon). But it reiterated its neutral rating, rather than opting for “buy.”



Headwinds for the crypto exchange include US trading activity moving toward US ETFs, CME futures and decentralized exchanges. Monthly data from competitors like Robinhood and Exodus affirms weak Q2 trends to that end. 



<img loading="lazy" decoding="async" width="624" height="321" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdFahGeN_g-af1h7aDPB_19dbDWe4Q0Y8_jK2pMIbNrIcSHdgL7qLbLLhRPpdk6CudaYGu26OGYr9Cdruyy-5G6LEOL6r6f1xVtKCc0HI2psZCas-B2-02kh4isBcqbXTN1r8CzwA?key=MFFChMm_9dlxyWTwVrYrqw">



Compass Point analysts estimate that Coinbase’s transaction revenue decreased 45% quarter over quarter.



“We&#8217;re hesitant toward shorting COIN during a crypto bull market and potential for Fed rate cuts — either from Powell or his successor,” Engel and Dilawar wrote. “However, if rate cuts and CLARITY act are postponed beyond 3Q25, this could pressure COIN&#8217;s valuation amid deteriorating fundamentals.”



Before you go enjoy your weekend (after reading the rest of this newsletter, of course), I’ll mention one other crypto-linked stock that just turned heads with its latest hire.&nbsp;



Nasdaq-listed SharpLink Gaming today <a href="https://x.com/ethereumJoseph/status/1948720039370092831">named</a> Joseph Chalom, BlackRock’s former head of digital asset strategy, as its co-CEO.&nbsp;



You might recognize the SharpLink name. It’s that <a href="https://blockworks.co/news/bitcoin-treasury-strategies-sharplink-eth">Joe Lubin-led company</a> that all of a sudden got really into Ethereum. It held 360,807 ETH, as of July 20. (For more on crypto treasury strategies, consider reading <a href="https://blockworks.co/news/companies-holding-crypto-phase-one">this</a>).&nbsp;&nbsp;



Sharplink’s stock is up about 110% from a month ago, but has dropped roughly 30% in the last week. Crypto equities remain a segment we’ll be watching closely.&nbsp;



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



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</ul>

Circle

Crypto stock outlooks fluctuate after GENIUS, ahead of Q2 reports

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



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After a process that took years (1,300 or so days, Galaxy CEO Mike Novogratz noted on a Tuesday earnings call), GLXY shares are trading on the Nasdaq.&nbsp;



The US listing boosts the stock’s visibility — i.e. via Robinhood and perhaps, one day, in indexes (S&amp;P, MSCI, Russell, etc.) More than that, though, we’re watching how it helps the firm scale as competition stiffens in the growing crypto space.&nbsp;



“Most of Galaxy&#8217;s growth over the last seven years was internally funded with investing profits or trading profits, and so there was a regulator on how fast we could grow,” Novogratz explained. “Depending on the opportunities we see, being able to tap the deepest capital market in the world is a huge advantage.”



In other words, the CEO added on the call: “Bigger is better in financial services, and we plan to get a lot bigger.&#8221;



We’ve seen some huge crypto M&amp;A so far this year. To name a few: <a href="https://blockworks.co/news/coinbase-deribit-deal-focus-derivatives">Coinbase-Deribit</a> (a $2.9 billion deal); <a href="https://blockworks.co/news/crypto-ma-mergers-feeding-frenzy-kraken">Kraken-NinjaTrader</a> ($1.5 billion); and <a href="https://blockworks.co/news/crypto-tradfi-intersections-ripple-blackrock">Ripple-Hidden Road</a> ($1.25 billion).



Novogratz noted that having a more fairly-valued stock — after historically trading below its book value — allows Galaxy to more seriously look at acquisitions.&nbsp;



“There are some businesses that make sense to grow organically, and some that make sense to add on,” Novogratz said. “And so, I think you&#8217;re going to see a little of both in the coming 36 months.”&nbsp;



DeFi Technologies also listed on the Nasdaq this week.&nbsp;



That company, like Galaxy, has been trading publicly in Canada (and continues to).&nbsp;



But as DeFi Technologies CEO Olivier Roussy Newton put frankly: “Canada is a small population base compared to the United States. The world trades on the US capital markets.”



He also alluded to M&amp;A, telling me: “You [present] your equity for investors, and if you can do that effectively you trade at a high multiple and you raise more money and you buy more companies.”



DeFi Technologies looks to have 100 crypto investment product listings by the end of the year. The company bought ETP issuer Valour in 2021 before acquiring Reflexivity Research and crypto liquidity provider Stillman Digital last year.



As for future acquisition targets, Newton said: “There’re a lot of private trading technology companies in the digital asset space that would want to…access capital market equity financings and other derivatives mechanisms to enhance those opportunities.”



Scale and product breadth will be especially important for firms like Galaxy and DeFi Technologies as more financial giants wade deeper into crypto.&nbsp;



One area that TradFi players entering the space are focused on (or will be) <a href="https://blockworks.co/news/yield-bearing-settlement-network-tokenization">is tokenization</a>, Novogratz said.



“We are trying to build our moat through domain expertise, through better customer relationships, and through kind of staying one step ahead of those guys,” he noted on the earnings call.



All’s to say, we’ll be watching more than just the GLXY and DEFT stock prices.



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

DeFi Technologies

Galaxy, DeFi Technologies look to leverage new Nasdaq listings

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



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We have a more specific date on when Galaxy Digital intends to (finally) go public in the US. And speaking of crypto-related equities, Grayscale’s launched a new ETF.



First, on Galaxy: The firm is eyeing May 16 for its Nasdaq listing. We reported earlier this month that the SEC <a href="https://blockworks.co/news/galaxy-sec-listing-nasdaq-ipo-market-crypto">“declared effective”</a> the company’s registration statement to do so. There’s still that shareholder meeting to approve the move on May 9.



Galaxy shares have traded on the Toronto Stock Exchange since 2020 and will continue to do so “for a period of time” if and when the Nasdaq listing is finalized, the company says. The new listing will “enable us to attract a broader investor base,” CEO Mike Novogratz said in a statement.&nbsp;



It would seem he’s right given financial pros like to see cash flows, balance sheets, etc. — things bitcoin alone doesn’t offer. And as noted before we’re keeping an eye on the other segment players looking to <a href="https://blockworks.co/news/circle-ipo-stablecoin-competition-investors">soon go public</a> (looking at you, Circle and <a href="https://blockworks.co/news/crypto-ipo-boom-etoro-kraken">eToro</a>).



On to the Grayscale update, the firm has launched an ETF that invests in companies adopting bitcoin as a treasury asset. Galaxy’s TSX-listed shares are actually the fund’s seventh-largest holding out of the gate. Its top two holdings are Strategy and Tesla, with ~27% and ~17% positions, respectively.&nbsp;



Bitwise launched a similar product in March. That one, too, skews heavily toward MSTR (also at nearly 27%) but opts for Marathon Digital and Riot Platforms as its next-biggest holdings (~11% and ~9%). Less than 2% of the fund’s assets currently go toward Tesla. 



That Bitwise offering has just $5 million in AUM after nearly two months on the market; still, these funds’ investable universes are <a href="https://blockworks.co/news/corporate-bitcoin-adoption-boom-inevitable-kraken">expected to grow quickly</a>. We’ll see what kind of impact that has on the demand for them.



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<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



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<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
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ETFs

Another crypto equity ETF launches ahead of Galaxy’s US public listing

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Galaxy&#8217;s possible US listing in the coming weeks would end a years-long process and keep up the momentum around more crypto firms going public.



The SEC has “declared effective” the company’s registration statement to list on the Nasdaq Global Select Market, Galaxy said yesterday.&nbsp;



The company’s shareholders are set to vote on Galaxy’s reorganization (becoming a new Delaware holding company) on May 9. Galaxy CEO Mike Novogratz said in a statement that, if approved, the listing could be completed by the end of Q2.



Galaxy, listed in Canada since 2018, has <a href="https://blockworks.co/news/galaxy-public-sec-earnings">tried to gain a US listing </a>for years. The company will keep trading on the Toronto Stock Exchange, it said Monday.



Executives noted on Galaxy’s March 28 earnings call that they had recently submitted an amended S-4 responding to the SEC’s ninth round of comments. Geez Louise.



There’s little doubt this step forward is a result of Gary Gensler no longer leading the agency. The SEC has clearly <a href="https://blockworks.co/news/sec-actions-timeline">cut out its animosity</a> toward crypto segment players in recent months.&nbsp;&nbsp;



Shares of crypto wallet provider <a href="https://blockworks.co/news/exodus-uplists-to-nyse-american">Exodus became available</a> on the NYSE American stock exchange in December. That company also had its <a href="https://www.globenewswire.com/news-release/2024/05/09/2878404/0/en/Listing-of-Exodus-Class-A-Common-Stock-Delayed-by-NYSE-American.html">troubles</a> getting a green light from the previous SEC administration.



Other companies appear to see the new SEC as an opportunity to do the same, with <a href="https://blockworks.co/news/circle-ipo-stablecoin-competition-investors">Circle</a> and <a href="https://blockworks.co/news/crypto-ipo-boom-etoro-kraken">eToro</a> publicly filing for IPOs in recent weeks. 



And so, it appears there could soon be more avenues for investors to gain crypto exposure. As 10T Holdings founder Dan Tapiero said at DAS last month: “American investors love owning equity.”



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<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha in your inbox. Think like an analyst. </li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Forward Guidance newsletter

Galaxy’s imminent US listing reflects SEC change

Michael Novogratz’s Galaxy has been ordered to pay New York State $200 million after it was accused of market manipulation.



A legal filing from this morning accuses the firm of manipulating the price of luna, the token tied to the now-failed algorithmic stablecoin Terra.&nbsp;



“This was not an easy decision and one that we considered carefully. Settling this matter will help Galaxy move forward and minimize distractions so that we can focus on our mission of driving innovation and growth in digital assets and artificial intelligence infrastructure,” Galaxy’s Michael Novogratz said in a statement.&nbsp;



Back in 2020, the legal filing claims, Terra founder Do Kwon sought out Galaxy to help purchase and promote Luna tokens.&nbsp;



“Galaxy bought more than 18.5 million LUNA from Terraform in October 2020 at $0.22 per token, a nearly 30% discount to LUNA’s then-market price of $0.31 and began endorsing Luna,” the <a href="https://ag.ny.gov/sites/default/files/settlements-agreements/galaxy-digital-holding-ltd-et-al-assurance-of-discontinuance-2025.pdf">filing</a> said.&nbsp;



But, after Novogratz got his Luna tattoo once the price hit $100, Galaxy was quietly selling LUNA without disclosing the sales to the public.&nbsp;



“Galaxy helped a little-known token increase its market price from $0.31 in October 2020 to $119.18 in April 2022.”



The filing claims that Galaxy and Luna went back and forth before beginning their business relationship, given that Galaxy sought to understand any potential use cases for Luna.&nbsp;



“Galaxy met with Terraform’s co-founders, reviewed Terraform’s public materials — including its white papers and public posts, spoke to node operators to confirm blockchain activity, reviewed blockchain data on the Terra blockchain explorer, and conducted background checks on Terraform’s co-founders,” the document said.&nbsp;



The offer Terra put on the table was simple: a 30% discount to market price, with tokens vesting monthly over the next year. Galaxy received a total of 18 million tokens, with Terra handing over 1/12 of those each month during that timespan.&nbsp;



Galaxy’s “Vice President explained that this was better than prior deals Terraform had offered to other investors. It meant Galaxy would be able to sell its LUNA when it received them each month.”



The signed agreement has Galaxy investing $4 million in exchange for a 30% discount to the spot price of luna — which was around $0.31 at the time. In total, Galaxy purchased 18,513,120 LUNA at $0.22 per token.



Lawyers laid out in the filing that Novogratz was quick to start endorsing Luna, misleading investors into thinking that they could make Luna transactions on Chai, which wasn’t true. Through press, Novogratz continued to promote Luna and the price quickly began climbing.&nbsp;



But behind the scenes, Galaxy was selling off its luna.&nbsp;



“On March 2, 2021, Terraform issued the fourth tranche of 1,542,764 LUNA to Galaxy, and on March 3, Galaxy sold all 1,542,764 LUNA at prices between $7.35 and $7.70.”



The settlement announcement coincided with Galaxy’s earnings, which were announced Friday.&nbsp;



“We only recently became aware that the NY attorney general was going forward with this matter, which led to settlement discussions that culminated with the outcome today,” a Galaxy spokesperson explained to Blockworks.



Updated March 28, 2025 at 10:03 am ET: Added comment from Galaxy. 



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Galaxy to pay $200M to New York over alleged LUNA manipulation

<div id="highlights-block_624733b5db268" class="highlights">
 <ul>
 <li>The acquisition is set to close after Galaxy Digital becomes a Delaware-based company</li>
 <li>Galaxy reported that its first quarter net comprehensive income is expected to be a loss of between $110 million and $130 million</li>
 </ul>
 
</div>



Galaxy Digital’s expected fourth quarter acquisition of institutional crypto platform BitGo has been delayed, and the deal is now anticipated to close later this year.



The company <a href="https://cms.blockworks.co/galaxy-digital-acquires-bitgo-for-1-2b/" target="_blank" rel="noreferrer noopener">first revealed its intent</a> to acquire BitGo in May 2021 in a cash and stock transaction valued at roughly $1.2 billion.



The purchase is now projected to close after Galaxy Digital becomes a Delaware corporation, according to a statement Thursday. That’s expected to happen between the second and fourth quarter, subject to SEC review.



“That&#8217;s a pretty broad window, and I think we&#8217;re going to hope for the best, and we&#8217;re going to continue to engage with the SEC,” CEO Mike Novogratz said on an earnings call.



The company then intends to list publicly on the Nasdaq. A source familiar with the matter said the listing process — and SEC approval — has taken longer than expected. If Galaxy were to close the BitGo deal before incorporating in the US, the source added, the company would still have to get regulatory approval for the purchase.&nbsp;



That would mean going through an intensive process twice: once in Canada and once in the US. The federal securities regulator has seen delays in approvals under the Biden administration, which is applying a heavier regulatory touch than the Trump regime. Other new listings, including SPACs, have likewise been delayed.



The updated cash and equity deal — $265 million and 44.8 million newly issued shares — values BitGo just below $1.2 billion. Other adjustments include BitGo shareholders owning roughly 12% of the combined company, up from an initial 10%.



Though the equity infusion dilutes the value of prior shareholders, the additional equity means new BitGo hires will also get in on the deal — a key component for retention.



Galaxy will have to pay $100 million to BitGo “in certain circumstances” if the sale doesn’t go through by the end of the year.&nbsp;



The deal was renegotiated due in part to <a href="https://www.bitgo.com" target="_blank" rel="noreferrer noopener">BitGo’s growth</a>, Novogratz said, adding the soon-to-be acquired company hired roughly 150 people since the deal was first announced.



“We remain committed to integrating BitGo and becoming an institutional crypto platform, period,” Novogratz said. “It&#8217;s a bigger and better company, and we&#8217;ll continue to work on integration side-by-side until we close the deal.”



The acquisition of BitGo is a significant step toward allowing Galaxy Digital to provide a full set of prime broker-type services to institutional investors, including custody, lending, trade execution, pricing and administrative services, Andrew Young, an investment banking analyst at Architect Partners wrote in a research note.



“This is a big financial commitment for Galaxy but perfectly consistent with the strategy to become the go-to crypto asset investment platform of institutional investors,” Young wrote. “The full set of capabilities are soon to be table stakes and are a necessity for institutional adoption of crypto assets.”



Damien Vanderwilt, Galaxy’s co-president and head of global markets, said on the call with analysts that the prolonged close of the BitGo deal is due to a focus on delivering new products — such as BitGo coin support and downstream services.



Galaxy reported net comprehensive income of $521 million in the fourth quarter. The company noted its first quarter net comprehensive income is expected to be a loss of between $110 million and $130 million, saying the crypto industry’s market capitalization is down about 4% since the end of 2021.



“We are ready for a volatile year, if that&#8217;s what we get, given the headwinds in macro,” Novogratz said. “But we&#8217;re certainly excited about getting through the SEC process and getting BitGo integrated with us as fast as we can.”



Michael Bodley contributed reporting.



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BitGo

Awaiting US Listing, Galaxy Digital Delays Purchase of Crypto Platform BitGo

Casey Wagner

<div id="highlights-block_60b68b8785cb1" class="highlights">
 <ul>
 <li>Sports merchandise company Fanatics will be Candy’s majority shareholder</li>
 <li>Novogratz and Vaynerchuk will be equity partners and serve as co-chairs</li>
 </ul>
 
</div>



Nearly two years after the launch of the non-fungible token platform NBA Top Shot, a new group of entrepreneurs is looking to capitalize on the popular sports NFT market by launching a new company called Candy Digital.



Included in the deal are Fanatics executive chairman Michael Rubin, Galaxy Digital founder and CEO Mike Novogratz and digital media entrepreneur Gary Vaynerchuck. Major League Baseball will be Candy’s first partner, according to a <a href="https://www.fanaticsinc.com/press-releases/fanatics-galaxy-digital-and-entrepreneur-gary-vaynerchuk-back-candy-digital-a-next-generation-digital-collectible-company" target="_blank" rel="noreferrer noopener">statement</a> released by Fanatics Tuesday. 



Sports merchandise company Fanatics will be Candy’s majority shareholder. Novogratz and Vaynerchuk will be equity partners and serve as co-chairs. Vaynerchuk will be a board member and advisor.



Each member of the group brings unique experience to the table. Rubin is the mastermind behind the world’s largest licensed sports apparel retailer. Fanatics has a customer base of more than 80 million.&nbsp;



Vaynerchuk, an early entrant into the sports card market, is the founder of digital media company VaynerMedia and athlete management firm VaynerSports. Former hedge fund manager Novogratz is one of the most vocal and respected crypto advocates on Wall Street. 



“The NFT space has traditionally focused on a small community of crypto-first customers, Candy&#8217;s sophisticated team is building immersive brand experiences that appeal to crypto-savvy players, consumers, memorabilia collectors, and sports fans alike, and Galaxy looks forward to participating in the evolution in collectibles,&#8221; said Mike Novogratz, founder, and CEO of Galaxy Digital and co-chair of Candy Digital.



Candy is hoping to capitalize on the unprecedented interest in the sports NFT market right now. NFTs experienced a major surge earlier this year as investors flocked to assets like autographs and trading cards. Sports <a href="https://cms.blockworks.co/the-investors-guide-to-nfts/" target="_blank" rel="noreferrer noopener">NFTs</a> have dominated headlines and raked in millions in revenue over the past six months. 



Major League Baseball is following in the NFT footsteps of the National Hockey League and National Basketball Association with its Candy partnership.



“From trading cards to autographed balls, baseball fans have demonstrated their passion for the sport and its players through collectibles for decades,” said Robert D. Manfred, Jr., Commissioner of Baseball, in a statement. “In working with Candy Digital to offer NFTs to MLB fans, we’re delivering an exciting new addition to the robust baseball collectible market. The founders of Candy are a dynamic group of executives with an impressive track record. We’re excited to be the first partner in this new venture with a team uniquely positioned for success.”&nbsp;



Candy’s first collectible will be a Lou Gehrig NFT of the baseball player’s July 4, 1939 farewell speech to be released on July 4. Candy will be the hub for purchasing, trading and sharing all officially licensed baseball NFTs going forward.