Mike Novogratz Unveils Plan for Cryptocurrency 'Merchant Bank'
Billionaire and ex-fund manager Mike Novogratz has unveiled the launch of a cryptocurrency "merchant bank."
Novogratz, a former chief investment officer for Fortress, is behind Galaxy Digital, which according to a Jan. 9 announcements will constitute a "full service, digital assets merchant bank." Described by some as a kind of "Goldman Sachs for crypto," Bloomberg reports that the plan is to get the company listed on the TSX Venture Exchange and raise upwards of $200 million.
The venture will not offer any services to U.S. residents, according to the release.
While Novogratz's group has a plan outlined for the future bank's operations, as well as a partial list of Galaxy Digital's management, the press release noted that the proposal was contingent on being accepted by the Canadian TSX Venture Exchange, all parties completing their due diligence inspecting company assets, and the formation of a board of directors independent of both Galaxy Digital and Bradmer.
The groups aim to finish their respective due diligence work before the end of the first quarter in 2018, according to statements.
Galaxy Digital was previously set to launch a cryptocurrency hedge fund before Novogratz moved to scuttle the launch in late December. At the time, he cited the challenges involved in managing clients' cryptocurrencies in addition to his own portfolio and other conflicts of interest.
He also cited market conditions – bitcoin had fallen nearly 50 percent in the previous few days – according to a previous Bloomberg report.