Assets, Bitcoin

How Much Bitcoin Does Galaxy Digital Own?

Galaxy Digital, the digital asset merchant bank founded by Mike Novogratz, holds about $290 million worth of bitcoin, according to a filing with the US Securities and Exchange Commission (SEC).

The holding is equivalent to about 2.5% of the company’s total assets, and was disclosed in a Form 10-Q filed with the SEC on Wednesday.

Galaxy Digital did not disclose how much it paid for the bitcoin, or when it acquired the cryptocurrencies. The filing says that the firm “may from time to time acquire and/or dispose of digital assets for its own account in open market transactions, privately negotiated transactions or otherwise.”

Bitcoin makes up the lion’s share of Galaxy Digital’s digital asset holdings. The firm also holds smaller amounts of ether, litecoin, XRP and other digital assets.

The disclosure comes as bitcoin prices have surged to new all-time highs in recent weeks. Bitcoin was trading above $19,000 on Thursday morning, after topping $18,000 for the first time on Wednesday.

Bitcoin’s price rally has been fueled by a number of factors, including increasing institutional interest in the cryptocurrency and optimism about its future as a store of value and hedge against inflation.

Galaxy Digital is one of a number of firms that have been investing heavily in bitcoin and other digital assets in recent months. Square, the payments company founded by Twitter CEO Jack Dorsey, invested $50 million in bitcoin earlier this year and has since seen its value increase to more than $1 billion.

And hedge fund manager Paul Tudor Jones said earlier this week that he has been buying bitcoin as a hedge against inflation. Jones compared buying bitcoin today to investing early in Apple or Google.

In its SEC filing, Galaxy Digital said that it has “experienced significant losses” since it was founded in 2017 and that it expects to continue to do so in the future. The company lost $272 million in the first nine months of 2020.

Still, Novogratz remains bullish on the long-term prospects for both Galaxy Digital and bitcoin. In an interview with CNBC last month, he predicted that both would be “multi-hundred billion dollar businesses” within five years.

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