Carlos

Sam Schubert

This is a segment from the 0xResearch newsletter. To read full editions, <a href="https://blockworks.co/newsletter/0xresearch" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Markets bounced as December rate-cut odds swung back above 80%, lifting BTC, equities and gold.



Monad launched mainnet yesterday, but MON’s day-one listing on Solana and Hyperliquid was arguably the bigger story. Finally, we dive into Galaxy’s investment case, with GLXY allowing investors to express a bullish crypto view while also getting exposure to AI compute infrastructure demand.



<h2 class="wp-block-heading">Indices</h2>



Markets bounced on Monday as odds swung back toward a potential December rate cut. Bitcoin climbed as much as 2.73%, briefly pushing above $89,000 before closing the day at $88,200 (+1.72%). The standout performer, however, was the Nasdaq 100 (+2.22%), posting its strongest daily gain since mid-May. The S&amp;P 500 (+1.20%) also logged its best session in six weeks, while Gold (+1.75%) edged out BTC on the day, closing at its highest level since Nov. 14.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="894" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=1024&amp;h=1024" alt="" class="wp-image-110110" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=467 467w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



It seems markets have been hyperfocused on US rate developments over the past two weeks. Yesterday, Fed Governor Waller reiterated that the labor market’s weakness could justify a 25 bps cut in December. The latest dovish comments led to probabilities of a December rate cut rising above 80% on both Polymarket and the CME’s <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">FedWatch Tool</a>.



The chart below shows Polymarket’s odds for the Fed decision in December. Over the past two weeks, odds have swung sharply between a 25 bps cut and no change, underscoring the challenge the market faces in pricing near-term rates in the absence of economic data after the longest US government shutdown recorded.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=1024&amp;h=1024" alt="" class="wp-image-110111" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Back on the crypto side, most indices outperformed BTC, catching a bid after a tough month for risk assets. The best-performing index was Crypto Miners (+8.4%), with Cleanspark (CLSK) up more than 10% after JP Morgan raised its guidance for the company. Notably, the No Revenue index (+7.9%) was the second-best performer in the cohort, suggesting that investors’ risk appetite may be increasing as macro concerns ease.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="904" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=1024&amp;h=1024" alt="" class="wp-image-110109" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=462 462w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



<h2 class="wp-block-heading">Market Update</h2>



Monad went live on mainnet yesterday, almost three years after the team <a href="https://blockworks.co/news/paradigm-leads-monad-parallel-evm-fundraise">first raised</a> in January 2023. <a href="https://app.blockworksresearch.com/research/monad_a-supercharged-evm-layer-1">Monad</a> represents a bold attempt to supercharge the EVM experience from the ground up, introducing a new consensus algorithm, a parallel execution engine, and a custom data architecture. The chain targets 10K+ TPS, 400ms blocks, and 800ms deterministic finality, though it remains to be seen how this fares in production.&nbsp;



While Monad’s architecture may be novel, the fact that it took so long to come to market means it now faces an uphill battle catching up to more mature networks like Solana or even L2s like Base in terms of ecosystem activity, DEX volumes, TVL, stablecoins in circulation and so on. The chart below shows the top applications on Monad by TVL, as of today. The four largest apps are well established players in the EVM ecosystem, with Uniswap v4 topping the cohort with $25 million in TVL.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=1024&amp;h=1024" alt="" class="wp-image-110112" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The only “Monad-native” applications in the chart above are Kuru and Neverland.



<a href="https://kuru.io/">Kuru</a> is a DEX with a hybrid order book-AMM design. The platform also offers a DEX aggregator. Kuru hopes to take advantage of Monad’s speed and low fees to provide a venue for market makers to handle liquid assets, while also offering passive liquidity solutions to support long-tail assets. The team raised <a href="https://blog.kuru.io/p/kuru-labs-raises-2-million-seed-round">$2 million</a> in a seed round led by Electric Capital in July 2024.&nbsp;



Neverland is a lending protocol built on Aave v3’s architecture. Per DeFi Llama, the protocol has about $1 million in deposits and $420,000 in borrows. So far, Monad apps are not particularly exciting, but rather things we’ve already seen time and again in other ecosystems (DEXs, money markets, etc.). It will be interesting to monitor if truly innovative apps emerge on the chain over the coming months. Personally, I’m interested to see if<a href="https://x.com/ThogardPvP/status/1963379267871613138"> prop AMMs</a> will be able to thrive on Monad, or if they remain a Solana-only phenomenon.



Perhaps more exciting than Monad’s launch itself was the day-one listing of MON by Solana and Hyperliquid. While Hyperliquid has already supported other high profile launches on day one (e.g., PUMP, XPL, 2Z), it was the first time Solana users were able to trade a non-native asset at launch with relatively deep liquidity. The game changer that allows Solana to be competitive with CEXs and Hyperliquid on this front is prop AMMs combined with hardened bridge infrastructure (e.g. Wormhole).MON trading volumes on Solana have surpassed <a href="https://orb.helius.dev/address/CrAr4RRJMBVwRsZtT62pEhfA9H5utymC2mVx8e7FreP2/markets?cluster=mainnet-beta&amp;sort_by=volume24h&amp;sort_type=desc">$60 million</a> over the past 24 hours, roughly 60% more than Hyperliquid spot ($37 million). When stacked against CEXs, Solana would have been the fifth-largest venue by trading volume, only behind Upbit, Coinbase, Bybit and Bithumb. With xStocks, battle-tested bridge infrastructure and prop AMMs, there is no technical barrier preventing Solana from supporting every relevant asset. While it’s tempting to frame yesterday’s events as Hyperliquid vs. Solana (competition is good), the more important story is onchain, decentralized trading venues gradually outcompeting CEXs over the coming years.



<h2 class="wp-block-heading">Galaxy Digital ($GLXY) Investment Case&nbsp;</h2>



Galaxy Digital (“Galaxy”) is turning into one of the cleanest listed ways to own the institutional build out of crypto markets, while also getting exposure to AI compute infrastructure demand. Here we take a closer look at its business segments in light of the recent selloff. The market still mostly files it as a volatile trading shop, but the mix is shifting toward more durable revenue being at the center of institutional crypto flows and contracted infrastructure income, which should support a more stable earnings profile through the cycle.



Recent results show what the model can earn when conditions are favorable, with the latest quarter delivering about $505 million of net income against $3.2 billion of balance sheet equity. In Q3, earnings mix translated into about $250 million of EBITDA from Digital Assets and $376 million from Treasury and Corporate, with Data Centers still negligible. Investors are buying a scaling digital asset platform with significant crypto and equity holdings, and essentially a call option on AI infrastructure. Earnings will still swing with asset prices and volumes, but the fact that Q3 2025 nearly matches full year 2024’s net income underlines Galaxy’s earnings leverage to a growing digital asset market. <img loading="lazy" decoding="async" src="blob:https://cms.blockworks.co/ce4295fc-6c7b-4ce6-bb87-7b53f1822df0" width="720" height="340">



Galaxy has three key segments.&nbsp;



<ul class="wp-block-list">
<li>About 40% of equity capital sits in Digital Assets, which encompasses Global Markets and Asset Management &amp; Infrastructure Solutions. Global Markets drives most of the earnings here, with its sell-side trading desk (spot and derivative OTC, lending, structured products), coupled with the investment banking arm, adding M&amp;A advisory and equity and debt capital markets fees. Asset Management &amp; Infrastructure Solutions earns fee income from active and passive investment products, crypto services, and staking and custody solutions that offer clients customized exposure and stronger security. </li>



<li>35% of equity capital sits in Treasury and Corporate, which manages Galaxy’s own portfolio of digital assets and strategic equity stakes, so Q3’s profit reflects mark to market gains of those holdings. </li>



<li>The remaining 25% is tied to Data Centers, mainly the Helios build in Texas, which is effectively pre-revenue today but is expected to generate contracted rent from 2026 with CoreWeave its anchor tenant. Phase I targets delivery of 133 MW of contracted critical IT load by 1H26, with capacity rising to 526 MW when Phase III is completed in 2028.</li>
</ul>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1225" height="543" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=1024&amp;h=1024" alt="" class="wp-image-110117" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=1225 1225w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=80 80w" sizes="auto, (max-width: 1225px) 100vw, 1225px" /></figure>



GalaxyOne is Galaxy’s consumer platform for US individual investors, bundling high yield cash, premium yield notes, and simple-crypto and US-equity trading in one app. If it scales, it can grow fee and spread income on client balances, provide cheaper and stickier funding for the trading and lending book, and create a direct funnel into Galaxy asset management and staking products. In big picture terms, it is a way for Galaxy to capture more of the economics of retail flows instead of relying only on institutional clients.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1229" height="550" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=1024&amp;h=1024" alt="" class="wp-image-110116" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=1229 1229w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=80 80w" sizes="auto, (max-width: 1229px) 100vw, 1229px" /></figure>



Galaxy is also putting its Class A common shares onchain on Solana in partnership with Superstate, creating fully SEC registered tokenized stock that trades and settles on a blockchain. That is less about near-term earnings and more about proving out tokenized capital markets, giving them a live case study to sell to issuers, funds and banks who want to bring other securities onchain. Supply of onchain GLXY can be tracked with this <a href="https://dune.com/glxyresearch_team/glxy-class-a-common-stock-token">Dune dashboard</a>.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1100" height="599" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=1024&amp;h=1024" alt="" class="wp-image-110115" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=1100 1100w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=80 80w" sizes="auto, (max-width: 1100px) 100vw, 1100px" /></figure>



Galaxy is still a high beta way to express a bullish crypto view, with trading and principal investing a big swing factor, but it offers a cleaner way to play the broader adoption theme than a single coin. There is regulatory risk with the evolving political environment, meaningful execution risk around Helios delivering its planned AI leasing economics, and GalaxyOne gaining real traction in a competitive consumer market.



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0xResearch Newsletter

Monad ships mainnet, while markets rebound

Blockworks

Galaxy Digital reported net income of $505 million for the third quarter of 2025, driven by record trading performance and gains across digital asset and investment positions.&nbsp;



The company’s adjusted EBITDA rose to $629 million, marking its strongest quarter since listing. The Toronto- and New York–based digital asset firm said total assets grew 27% quarter-over-quarter to $11.5 billion, with $1.9 billion in cash and stablecoins and $3.2 billion in equity.&nbsp;



Galaxy’s Global Markets division led the rebound, delivering a 432% increase in adjusted gross profit to $295 million amid higher spot and derivatives activity. Trading volumes jumped 140% from Q2, including the execution of a $9 billion bitcoin sale on behalf of a client.



The company’s Asset Management &amp; Infrastructure Solutions segment recorded $2 billion of net inflows and ended the quarter with $9 billion in assets under management and $7 billion under stake. Its Treasury &amp; Corporate unit generated $408 million in adjusted gross profit, supported by digital asset and equity investment gains.



Galaxy said its Helios data center campus in Texas remains on schedule, with 133 MW of capacity set to come online in the first half of 2026 under lease to AI infrastructure provider CoreWeave. A newly secured $1.4 billion project financing facility will fully fund the $1.7 billion Phase I build, while Phase II expansion is now under contract.



Recent initiatives include the October 6 launch of GalaxyOne, a unified platform for U.S. investors to access high-yield cash, crypto, and equities, and a $460 million equity investment from an unnamed asset manager to support corporate growth.



Galaxy’s management said the quarter reflects the company’s “record operating performance across trading and asset management,” while noting that data-center earnings will remain immaterial until 2026.



This is a developing story.



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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">Michael McSweeney</a>&nbsp;before publication.



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Galaxy

Galaxy posts $505M profit as trading and asset gains surge

Galaxy Digital Inc. has launched GalaxyOne, a new consumer-focused financial platform led by Zac Prince, the co-founder and former chief executive of BlockFi Inc. — the crypto lender that collapsed after the fall of FTX in 2022.



The platform <a href="https://www.bloomberg.com/news/articles/2025-10-06/blockfi-founder-zac-prince-returns-to-lead-galaxy-s-retail-push">combines</a> high-yield banking, crypto trading, and commission-free stock brokerage in one app, marking Galaxy’s first direct move into retail finance.



Prince <a href="https://x.com/GalaxyOneZac/status/1975171091204059412">joined</a> Galaxy earlier this year after the firm’s acquisition of Fierce, a personal finance app, to lead the integration and relaunch under the Galaxy brand. GalaxyOne offers a 4% APY cash account insured by Cross River Bank and the FDIC up to $250,000, along with crypto trading for Bitcoin, Ethereum, Solana and Paxos Gold.



A premium yield product offering 8% APY is <a href="https://x.com/galaxyhq/status/1975173116428234999">available</a> to accredited investors, though it is not FDIC-insured and is guaranteed only by a Galaxy subsidiary.



Prince said the new platform reflects lessons from BlockFi’s downfall, which resulted from risky lending practices and a lack of registration with the US Securities and Exchange Commission (SEC)—issues that led to a $100 million settlement in 2022.&nbsp;



He described Galaxy’s approach as “much more conservative,” emphasizing strengthened risk controls and regulatory alignment. Galaxy’s risk team has quadrupled in size in recent years, underscoring a shift toward institutional-grade oversight.



The launch follows Galaxy’s NASDAQ listing and aligns with broader efforts by firms such as Robinhood Markets Inc. to merge banking and crypto services. Shares of Galaxy Digital rose 5% to $38.06 after the announcement, tripling over the past year as the company expands beyond institutional trading into the retail market.



This is a developing story.



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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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Banking

Galaxy Digital launches retail platform led by ex-BlockFi CEO

Samsung Electronics has partnered with Coinbase to expand cryptocurrency access to more than 75 million Galaxy users in the United States, with plans to extend the effort globally.



Beginning October 3, Samsung Wallet users can access Coinbase One, the exchange’s premium membership program, directly from their devices. The <a href="https://www.coinbase.com/blog/Samsung-taps-Coinbase-to-bring-crypto-to-more-than-75-million-Galaxy-users">collaboration</a> aims to simplify crypto adoption by combining Samsung’s mobile reach with Coinbase’s trading and custody infrastructure.



Coinbase One offers zero trading fees on certain transactions, enhanced staking rewards, dedicated customer support, and limited account protection against unauthorized transfers. A Coinbase debit card, allowing crypto-based payments and rewards, is also tied to the service.



The integration builds on Coinbase’s recent push into mainstream payment tools, including a live rollout of its Samsung Pay feature for US users.



“Together with Samsung, we’re pairing their global scale with Coinbase’s trusted platform to deliver the best value for people to access crypto,” said Shan Aggarwal, Chief Business Officer at Coinbase.



Drew Blackard, Senior Vice President of Mobile Product Management at Samsung Electronics America, added “Samsung Wallet is a trusted tool to millions of Galaxy users, and we’re continually working to find creative ways to enhance the experience with added functionality,” going on to call Coinbase an “ideal partner” in achieving this mission.



This marks one of the largest exchange–hardware partnerships since Apple Pay’s limited crypto wallet integrations.



This is a developing story.



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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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Coinbase

Galaxy users gain Coinbase One access through Samsung Wallet

Galaxy Digital has partnered with financial technology firm Superstate to launch tokenized versions of its Class A common stock on the Solana blockchain. This marks the first time SEC-registered public equity has been issued directly on a major public chain.



<a href="https://investor.galaxy.com/news/news-details/2025/Galaxy-and-Superstate-Launch-GLXY-Tokenized-Public-Shares-on-Solana/default.aspx">Announced</a> on Sept 3, the rollout uses Superstate’s Opening Bell platform, where the firm acts as the SEC-registered transfer agent to record ownership updates onchain in real time as tokens move between wallets.



Unlike synthetic products or wrapped securities, Galaxy’s tokenized shares are legally equivalent to traditional stock, carrying full shareholder rights. Initial availability is limited to approved, KYC-verified investors, who can hold and transfer shares within self-custodied wallets.



According to Barron’s, as of early September, 21 investors had <a href="https://www.barrons.com/articles/galaxy-digital-tokenize-stock-fa4051d5">tokenized</a> 32,374 shares on Solana, underscoring measured but notable uptake.



Exodus set an early precedent in 2024 when it <a href="https://x.com/AlgoFoundation/status/1963305677637521877">tokenized</a> its SEC-registered Class A common stock on the Algorand blockchain.



At the time, Exodus became the first U.S. company to have shares simultaneously <a href="https://x.com/jprichardson/status/1869397766402965544">listed</a> on a national exchange and digitally represented on-chain, with tokens held directly in its wallet application. Galaxy’s launch extends that model to a Nasdaq-listed firm on Solana.



Galaxy’s chief executive Mike Novogratz said the initiative aims to combine the transparency and composability of crypto markets with the protections of regulated equity. By leveraging Solana’s fast settlement, Galaxy shares can be transferred around the clock, a shift from traditional market hours.



The firms are also studying how automated market makers (AMMs) could support tokenized equity trading within the SEC’s Project Crypto framework.



Blockworks previously <a href="https://blockworks.co/news/crypto-treasuries-surge-amid-ipo-filings">reported</a> that corporate treasuries and IPO activity in the digital asset sector have accelerated alongside regulatory shifts, while the SEC and CFTC recently <a href="https://blockworks.co/news/sec-cftc-crypto-coordination">announced</a> a joint initiative to harmonize oversight under Project Crypto and the Crypto Sprint.&nbsp;



Galaxy’s tokenization effort fit squarely within this broader backdrop of companies and regulators experimenting with ways to bring traditional finance structures onchain.



Updated 9/4/25 at 10:10 a.m. ET to include context on Exodus.



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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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Equities

Galaxy tokenizes SEC-registered shares on Solana

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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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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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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Circle

Crypto stock outlooks fluctuate after GENIUS, ahead of Q2 reports

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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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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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ETFs

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

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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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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

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 <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>
 
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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.

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