Mike Novogratz's Galaxy Digital eyes listing on Nasdaq pending shareholder approval
- Galaxy Digital Holdings has announced its intent to list on the Nasdaq on May 16.
- The listing is subject to key factors, including legal requirements and shareholder approval.
- Galaxy Digital's CEO and founder, Mike Novogratz, views the Nasdaq listing as a secure and efficient gateway for digital assets.
Galaxy Digital Holdings Ltd., a leading digital asset fund manager under the leadership of CEO and founder Mike Novogratz, said on Wednesday that it intends to list on the Nasdaq Global Select Market on May 16. The announcement could mark a significant milestone for the company in its aim to become a leading gateway for institutional crypto adoption.
Galaxy Digital to make comeback to US
Galaxy Digital is expediting its corporate restructuring to relocate its headquarters from the Cayman Islands to Delaware, United States, following approval from the Securities and Exchange Commission (SEC). According to the announcement posted on the company’s official website, the newly registered Galaxy Digital is expected to begin trading on Nasdaq on May 16.
The Class A common stock will be listed under the ticker symbol GLXY, with existing shares currently trading on the Toronto Stock Exchange continuing to trade without interruption. However, existing shares trading over-the-counter (OTC) will be swapped to GLXY shares following the Nasdaq listing.
Galaxy Digital has scheduled a special meeting of shareholders for May 9 to obtain their approval for its reorganization, alongside securing final approval for the listing on Nasdaq.
About the listing, Novogratz said that it will position the digital asset management company as a "safe and efficient gateway to digital assets," especially for institutional investors seeking exposure to the crypto market.
"We are confident that this listing will be value enhancing to the company and our shareholders and enable us to attract a broader investor base," Novogratz said.
Galaxy reported $1.5 billion in equity capital and a 300% increase in revenue during its latest company earnings for 2024.
Crypto firms move amid shift in regulatory landscape
The timing of Galaxy Digital's debut on Nasdaq is notable considering the ongoing regulatory shift in the US. In addition to President Donald Trump signing an executive order to establish a Bitcoin strategic reserve, Paul Atkins recently took over as the SEC Chair in April. Atkins has promised to nurture regulatory clarity for cryptocurrencies, encouraging firms like Galaxy to pursue public listings. Galaxy Digital's return to the US highlights the evolving regulatory landscape, marked by President Trump's support and vision for making America a global hub for cryptocurrency.
OKX US, a subsidiary of OKX exchange, officially debuted in the US in April, several months after settling with the Department of Justice (DoJ) for operating in the country without a money transmitter license.
This contrasts with decisions by other blockchain-based companies, such as Ripple, which canceled its anticipated initial public offering (IPO) earlier in the year, citing regulatory uncertainty. Ripple had been exploring the IPO since late 2023 amid the lawsuit against the SEC.
Although Ripple is likely to settle with the regulator, the company appears to be focusing on expansion, having acquired Hidden Road, a brokerage firm, for $1.25 billion in April. Ripple recently made public its plan to acquire the issuer of USDC stablecoin, Circle, for up to $5 billion. However, Circle has rejected Ripple's bid and will continue to focus on its IPO goals.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
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