Galaxy Digital Eyes More Crypto Bankruptcy Assets Following FTX Coin Deal

• Galaxy Digital Eyes More Acquisitions from Bankrupt Crypto Firms
• A Tripling in Assets Under Management
• A Plan to Replicate Success
• GK8 Acquisition
• A Candidate for Future Acquisitions
• Applications and Partnerships

Galaxy Digital Eyes More Acquisitions from Bankrupt Crypto Firms

Galaxy Digital (GLXY), a prominent player in the cryptocurrency financial services sector led by Mike Novogratz, is setting its sights on purchasing additional assets belonging to insolvent crypto businesses. This follows their successful procurement of bitcoin and ether from the crypto exchange FTX$3.28 -5.38% on behalf of the estate's management, reveals a report by the Financial Times.

A Tripling in Assets Under Management

The August deal saw a threefold increase in Galaxy's assets under management, bringing the total to $5.3 billion, as confirmed by the Financial Times. Following the significant achievement, Galaxy gained the needed court approval to sell FTX's shares in Grayscale and Bitwise investment funds.

A Plan to Replicate Success

According to Steve Kurz, Galaxy's global head of asset management, the company aims to replicate its success with other companies facing bankruptcy. This includes businesses that FTX initially invested in as a venture capital provider.

GK8 Acquisition

Galaxy Digital marked a milestone in December of the previous year when it emerged victorious in an auction to purchase the self-custody platform GK8. The prior owner of the platform was the bankrupt crypto lender, Celsius Network.

A Candidate for Future Acquisitions

As Kurz noted, the company's crypto venture team has been investing off their balance sheet for five years. The established record in that aspect of their asset management business makes Galaxy an ideal candidate for similar acquisitions in the future.

Applications and Partnerships

In spite of the approximate 80% loss in the share value of the company traded in Toronto last year, Galaxy has filed an application for a spot bitcoin exchange-traded fund (ETF) with Invesco. Additionally, in April, the company announced a partnership with asset manager DWS to establish exchange-traded products (ETPs) in Europe.

Edited by Jonathan Stoker