Mike Novogratz, the CEO of Galaxy Investment Partners is supposedly close to securing $250 million toward a cryptocurrency-industry financing credit fund. This fund will allegedly support crypto businesses.
Sources close to the company have divulged that Galaxy Digital is in the process of securing 250 million USD to set up a credit fund, as per a Business Insider exclusive report. This fund is allegedly being set up to finance cryptocurrency and digital asset funds under pressure to deal with the long-lasting bear market.
It is to be noted that this initiative comes in a very essential phase for crypto-related companies. The reason behind the same is that the valuation of the cryptocurrency market has plunged by more than 85 percent, since January 2018.
It became more and more thorny for companies in the crypto domain to raise funding from venture capital and individual investors because the valuation of tokens and small market capitalization projects declined a lot.
The initiative of Mike Novogratz and Galaxy Digital comes in a time during which even the biggest and most profitable companies in the blockchain and cryptocurrency space are trimming their existing workforce to adjust to market conditions. Some of these notable companies are Consensys, Steemit, Bitmain, and Coinbase.
It is to be noted that if Mike Novogratz and the team at Galaxy Digital successfully finishes the $250 million round, it will establish a positive sentiment in the blockchain and cryptocurrency space.
More than a few major financial institutions in the likes of Fidelity and Nasdaq have invested tens of millions of dollars in the preceding three months with the long-term outlook of the cryptocurrency domain in mind.Furthermore, blockchain projects are regularly securing funding rounds from high profile venture capital firms. Also, many leading financial institutions are engaging in multi-million dollar deals to finance innovative crypto businesses.
Despite the fact that the price of major digital assets including Bitcoin stays down considerably since January of last year, the developments in the blockchain and cryptocurrency domain could serve as a pointer for the sturdy long-term inclination of the space.