Galaxy Digital, one of the leading conglomerates in the crypto sector, has announced the closing of its first venture capital fund supported by external capital, raising 175 million dollars.
This milestone represents a fundamental step for the company, which until now had financed its investment activities exclusively through internal resources.
The new fund, which has surpassed the initial target of 150 million dollars, marks the beginning of a new phase of expansion for Galaxy Digital, now determined to strengthen its presence in the world of early-stage crypto startups.
A historic turning point for Galaxy Digital in the crypto world
According to what was stated by the general partner Mike Giampapa, the main mission of the fund is to support emerging companies that develop innovative solutions based on stablecoin.
That is, DeFi applications and other use cases of the blockchain that go beyond mere speculation.
“We are witnessing a fundamental shift from more speculative use cases of blockchain to something much more tangible,” explained Giampapa, emphasizing how the sector is maturing and offering increasingly concrete opportunities.
The decision to open the capital to external investors comes at a time of profound transformation for the crypto industry, marked by the collapse of FTX.
Giampapa recounted that Galaxy Digital had long desired to expand its venture capital activities, but it was the post-FTX context that provided the right opportunity to make this leap.
“Silently, we have had this stablecoin revolution,” stated Giampapa, highlighting how the sector has been able to reorganize and find new solid foundations on which to build.
The new fund sees Galaxy Digital itself as the main investor, holding both the shares of the general partner and the limited partner.
Giampapa did not want to reveal the identity of the other participants, but described them as significant institutional players, including family office and fondi di fondi connected to the clients of Galaxy’s wealth management division.
This investor profile confirms the growing attention of institutions towards the cryptocurrency sector and blockchain technologies.
The first investments: focus on performance and innovation
The first closing of the fund, which took place in July 2024, saw the collection of 113 million dollars, of which 50 million have already been invested in promising ventures such as Monad – a performance-focused blockchain – and Ethena, an issuer of a yield-generating stablecoin.
These initial investments reflect Galaxy Digital’s strategy, aimed at supporting projects that focus on efficiency, scalability, and new applications of blockchain technology.
Founded in 2018 by former Goldman Sachs partner Mike Novogratz, Galaxy Digital quickly established itself as one of the leading conglomerates in the crypto sector, with activities ranging from asset management to bitcoin ETFs, from mining to venture capital investments.
In May 2024, the company reached another important milestone with the listing on the Nasdaq, consolidating its leadership position and bringing the value of assets managed on its platform to 7 billion dollars.
Despite the growth, Galaxy Digital also faced challenging times. In the first quarter of 2025, the company recorded a loss of 295 million dollars, mainly due to the decline in cryptocurrency prices and the restructuring of the mining branch.
However, the ability to attract new capital and the confidence of institutional investors demonstrate the solidity of the business model and the resilience of the company in the face of market fluctuations.
A historic day for Galaxy Digital
On November 5, 2024, coinciding with the United States presidential elections that saw the victory of Donald Trump, Galaxy Digital recorded its biggest trading day of the year.
On that day, Mike Novogratz’s net worth increased by 15%, equivalent to approximately 600 million dollars, reaching 4.6 billion dollars.
A result that demonstrates the centrality of Galaxy Digital in the cryptocurrency landscape and its ability to capitalize on major market events.
The initiative by Galaxy Digital confirms how the cryptocurrency sector is entering a new phase of maturity, in which the focus is increasingly shifting towards concrete and sustainable applications of blockchain technology.
The collection of 175 million dollars for the first external venture capital fund represents a strong signal for the entire ecosystem, paving the way for new investments and greater participation of institutional investors.
With a clear strategy and a consolidated presence in the main segments of the crypto market, Galaxy Digital positions itself to be one of the protagonists of the next wave of innovation in the sector.
Specifically by supporting the most promising startups and contributing to defining the future of cryptocurrencies and decentralized finance.