Galaxy Digital raises $175M in first fund to expand crypto investments

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Galaxy Digital has closed a $175 cardinal task fund, its archetypal with extracurricular capital, arsenic the institution ramps up plans to put successful early-stage crypto startups.

The fund, which exceeded its $150 cardinal target, marks the archetypal clip Galaxy has accepted extracurricular capital. Until now, the institution had relied solely connected its ain equilibrium expanse for task investments, according to a study from Fortune.

General spouse Mike Giampapa told the outlet that the extremity is to backmost early-stage companies tackling stablecoins, DeFi applications, and different blockchain usage cases moving beyond speculation.

“You’re seeing this cardinal displacement from much speculative usage cases of blockchains to thing that’s overmuch more…tangible,” helium told Fortune.

Galaxy expands task limb aft FTX collapse

According to Giampapa, Galaxy had agelong wanted to standard its task cognition beyond equilibrium expanse investing but saw the close infinitesimal post-FTX collapse.

“Quietly, we had this stablecoin revolution,” helium said. “While the manufacture was getting our feet underneath america again, it became evident that we wanted to instrumentality our task franchise to the adjacent level.”

The caller money is anchored by Galaxy itself, which holds some wide spouse and constricted spouse stakes. Giampapa declined to sanction different investors but described them arsenic organization players, including household offices and fund-of-funds linked to Galaxy’s plus absorption clients.

Galaxy announced a archetypal adjacent of $113 cardinal successful July 2024 and has already deployed $50 million, backing companies specified arsenic Monad (a performance-focused blockchain) and Ethena (the issuer of a yield-bearing stablecoin).

Cointelegraph reached retired to Galaxy for remark but had not received a effect by publication.

Galaxy becomes a crypto giant

Founded successful 2018 by erstwhile Goldman Sachs spouse Mike Novogratz, Galaxy has grown into a sprawling crypto conglomerate with vulnerability to plus management, Bitcoin exchange-traded funds (ETFs), mining and task investing.

In May, the steadfast was listed connected Nasdaq and reported $7 cardinal successful assets nether management. However, it suffered a nonaccomplishment of $295 cardinal successful the archetypal 4th of 2025 owed to falling prices and restructuring successful its mining arm.

As Cointelegraph reported, Galaxy Digital clocked its biggest trading time of 2024 connected Nov. 5, the time the 2024 US predetermination was called and Donald Trump was declared president-elect. On that day, Novogratz’s nett worthy surged astir 15%, oregon by astir $600 million, to $4.6 billion.

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