Mike Novogratz, a hedge fund manager-turned cryptocurrency bull, has made a $15 million dollar investment on AlphaPoint Corp, a cryptocurrency exchange platform, through his firm Galaxy Digital on Thursday, Bloomberg reports.
AlphaPoint is a New York-based company that aims to simplify the way in which institutions launch cryptocurrency exchanges and tokenize assets. It is an early entrant to the cryptocurrency space and already counts customers that include commodities giant CME Group, the Royal Mint (of England) and more.
With the funds from Novogratz’s newly launched firm, AlphaPoint’s co-founder and CEO Salil Donde hopes to expand to include a wide range of other assets that have traditionally been difficult to trade. He explained:
We believe the next wave of capital formation and societal wealth creation is going to come from the digitization and trading of illiquid assets,
Speaking to CoinDesk, Donde praised the new partnership between his company and Galaxy saying that the two firms are both leaders in the blockchain and crypto sector. He explained,
We are both leaders in the crypto and blockchain space and there will be immense opportunities where we can collaborate for the benefit of mutual customers,
Galaxy Digital Ventures MD to Join the AlphaPoint Board of Directors
From now on, Greg Wasserman, managing director of Galaxy Digital Ventures, will reportedly join AlphaPoint’s Board of Directors. Speaking about companies’ dealings, Novogratz said in a statement:
We are in the early stages of a fundamental transformation in financial markets due to the digitization of assets. We are excited to partner with AlphaPoint as we continue to help drive this revolutionary change in digital markets.
The company plans to use the funds to double the size of its team by the end of this year, though Donde declined to reveal the actual number of employees.
Novogratz, who is a former Wall Street macro trader, is aiming to turn Galaxy Digital into what he reportedly calls an institutional-quality merchant banking business in digital currency and blockchain. According to Bloomberg, in January the investor rolled out a plan to raise $191 million and build the Drexel of crypto.
AlphaPoint was founded in 2013 to help cryptocurrency exchanges build out their infrastructure but has since expanded its service to include a wide range of other assets. Current exchanges using the technology include Bitnaru, Miami Crypto Exchange, Cubobit and Bitcoins Norway, according to the firm.
New confidence appears to be forming in the crypto space, especially after the recent SEC announcement which declared that Ethereum, Bitcoin and many other cryptocurrencies were indeed not securities, and that the definition of a security would change as the space progressed. Novogratz has appeared to become more confident in cryptocurrency as well, having backed off from Bitcoin in early 2018.
What’s your take on the new investment made by billionaire investor Novogratz in the crypto space? Let us know in the comments section.