You can also read this news on BH NEWS: Galaxy Raises $113M for Crypto Venture
At the start of 2023, the cryptocurrency market hit a low, but it began to stabilize and by March 2024, Bitcoin reached its all-time high (ATH). Despite subsequent price drops, significant developments continued. Recently, Galaxy Asset Management announced a substantial capital raise.
Galaxy Asset Management, led by billionaire Michael Novogratz, unveiled that it raised $113 million for a new crypto initiative. This venture will focus on early-stage cryptocurrency projects, targeting areas such as software, infrastructure, and financial applications. Bloomberg reported that the new fund, named Galaxy Ventures Fund I LP, aims to invest in 30 companies initially, with plans to raise $150 million by the end of 2025.
The $113 million funding milestone is a significant indicator for the institutional involvement in the crypto sector, potentially paving the way for a major new crypto protocol. Galaxy has previously invested in notable projects like Ethena and Monad, aligning with its long-term investment strategy in blockchain technology.
According to Mike Giampapa, a general partner at Galaxy, blockchain technology is poised to play a vital role in the future of global payment systems. Giampapa stated that the firm’s long-term view suggests a transition period of one to two decades during which blockchain will become integral to most transactions. As part of this vision, Galaxy’s new fund will allocate between $3 million and $5 million to each project.
Strategic Insights
– Galaxy’s significant funding round indicates robust institutional confidence in the future of cryptocurrency.
– Early-stage investments in crypto infrastructure and financial applications demonstrate a strategic focus on underlying technologies.
– The planned $150 million fund target by 2025 suggests a long-term commitment to blockchain innovation and development.
During these developments, Bitcoin’s price has also been under scrutiny. Currently, Bitcoin is trading at $64,100, reflecting a 3.4% decline over the last 24 hours. The market capitalization of Bitcoin has dropped below $1.3 trillion, settling at $1.265 trillion, while the trading volume has decreased by 12.9% to $35.1 billion. This market fluctuation underscores the ongoing volatility within the cryptocurrency space.