Galaxy Digital Holdings Goes Public on Toronto Stock Exchange

Galaxy Digital Ventures, a cryptocurrency merchant bank, is slated to be listed on the Toronto Stock Exchange (TSX) on August 1, according to founder Michael Novogratz.

After a beleaguered eight-month overview by local regulators, Galaxy Digital will finally be listed through Galaxy Digital Holdings, with the GLXY ticker.

The road to being listed took longer than expected due to the fact that Galaxy Digital did not have the two years’ of audited financials required for a initial public offering (IPO) in the US. The company instead underwent a merger with a TSX-listed shell company. Canadian regulators scrutinized the merger, and decided to delay the initial trading date from April to August.

Galaxy Digital had some missteps in the beginning of the year after having sold shares at $5 CAD apiece in a private placement in January, coming right after the peak of Bitcoin (BTC) back in December of 2017. With the flagship virtual coin dropping by 40%, the speculation is that the bank will start with a lower trading value.

Novogratz has commented:

“If I knew what I know now, knew the crypto markets were going to swoon as much, and it was going to take so long, I might have stayed private for another year or so and then gone public. But I don’t think it’s a mistake.”

Novogratz is a former Goldman Sachs macro trader, and he wants his company to be listed in Frankfurt, London, and Hong Kong. He has stated:

“We’re going to be a global company; we want to be globally traded.”

The listing on the TSX comes after some hardship, with Galaxy Digital’s earnings reporting a quarterly loss of $134 million. However Novogratz took this in stride going so far as to say:

“I have complete confidence in our team’s ability to continue driving growth and believe the company is strategically positioned to help further institutionalize the digital assets and blockchain technology industry.”

Novogratz further added that he aims for his company to be cash-flow positive before 2019. The billionaire investor seems determined to ride through any storm to see his company succeed. When he initially launched Galaxy Digital back in November 2017, he had injected $302 million of his own funds, out doing the $242 million acquired by all other contributors combined.