The Goldman of Crypto – Mike Novogratz Plans Cryptocurrency Merchant Bank
He Is Set to Unveil a Merchant Bank for Cryptocurrency
Back in 2017, Mike Novogratz laid out an ambitious plan to start a crypto hedge fund by the end of the year. Those plans were shelved before long, but it seems that he has expanded and come up with an entirely new and more ambitious plan – setting up the “merchant bank” of digital currencies“.
Months in the Making
According to sources close to Novogratz, he has been developing his new project’s plans for months. The plan is almost ready, and it seems pretty sound.
According to sources, he will start by buying First Coin Capital Corp, a Canadian crypto startup. This will help give his future bank the strong footing it needs to thrive in the industry. He will then proceed to buy and merge with Bradmer Pharmaceuticals Inc., a Canadian shell company. Following this, he will use both entities to raise about $200 million through a private stock placement.
The merged companies will then be renamed Galaxy Digital Holdings, the next “Goldman of cryptocurrencies.”
A Full-Service Merchant Bank
Mike Novogratz plans to offer all crypto services through his merchant bank. So far, he has promised four crucial services:
- Trading: Millions of dollars change hands every day through cryptocurrency transactions. There are several crypto exchanges in the world, but supposedly none will come close to Galaxy Digital Holdings. It will facilitate the exchange of cryptocurrencies for other cryptocurrencies, as well as fiat.
- Principal Investing: Galaxy Digital Holdings will also offer a platform where clients can invest in cryptocurrencies just as he did with Bitcoin and other cryptocurrencies in his vast inventory.
- Asset Management: Mike Novogratz currently manages over $100 million in digital currencies in his personal inventory. He plans to add clients’ digital currencies to his bank’s inventory and oversee their management.
- Advisory Work: The crypto industry is incredibly dynamic as there are new developments every other day. To this end, Galaxy Digital Holdings will monitor the markets and advise its clients accordingly. Mike Novogratz’s vast experience in the field will come in handy.
Bright Future for Digital Currencies
Mike Novogratz has in the past been quoted saying that digital currencies have created the biggest bubble in recent history. However, he has also said that blockchain technology, which is behind the formation of digital currencies, will shape the future of finance, just as the Internet changed communication. As such, he is not worried about fears that the crypto industry will collapse and cryptocurrencies will disappear altogether.
Mike Novogratz’s plans all rely on whether or not Canada’s TSX Venture Exchange will list. If it does, then it will be the first listed digital currencies bank.
Image Credit: CNBC
Do you think that Mike Novogratz’s idea is a bit far-fetched? Do you think that Canada will list Galaxy Digital Holdings? Tell us what you think in the comments below!