Posted on

Galaxy Digital Sells Block.One Stake; Will EOS Prices React?

Galaxy Digital, the crypto merchant bank dedicated to the digital assets, has announced a Partnership update with EOS blockchain maker, Block.one. The Michael Novogratz founded firm has received over $70 million by selling its stake in the blockchain company.

In an announcement
on May 21 Galaxy Digital Holdings Ltd said that the company, referred to as the
‘Partnership’, accepted a tender offer in the ordinary shares of Block.one. On
Monday the crypto bank received $71.2 million for the shares representing a
majority of its position. It added that a 123 percent return on realized investment
had been made.

Michael Novogratz, CEO and Founder of Galaxy Digital,
stated;

“The acceptance of Block.one’s tender offer reflected a decision to rebalance the portfolio to maintain an appropriate level of diversification after the position increased due to its substantial outperformance relative to the remainder of the portfolio.”

He added that they would continue to work with Block.one as a key partner across a number of business lines including the Galaxy EOS VC Fund which invests in companies building on the EOS protocol.

The two companies entered a joint venture in January 2018 to launch the EOSIO Ecosystem Fund with $325 million. Block.one received further investment from a number of big names including PayPal co-founder Peter Thiel and Bitmain co-founder Jihan Wu in July last year.

According to Bloomberg
this exit comes as part of Block.one’s buyback program of 10% of its company
shares. This could result in returns as high as 6,567% the report added. It
continued to state that the firm’s buyback offer values itself at around $2.3
billion. This represents an increase of almost 66 times from what it was valued
at in a 2017 seed funding round.

Bloomberg added that Block.one had around $3 billion in
assets including cash and investments at the end of February and by March it
held 140,000 BTC according to a company email.

EOS Price Reaction

As expected there has been no real reaction on EOS markets as this was an anticipated part of the original investment program by Block.one. On the day the token is trading flat at $6.30 and it has steadily lost ground to Bitcoin over the past few weeks. EOS has made no real independent moves and has mirrored the ebbs and flows of the rest of the crypto markets.

EOS prices 7 days – Coinmarketcap.com

Since the beginning of the big rally in early April, EOS has
only managed a gain of 50% whereas Bitcoin has almost doubled. Rival dApp
network Ethereum
conversely has surged
80% over the same period.

The post Galaxy Digital Sells Block.One Stake; Will EOS Prices React? appeared first on Ethereum World News.

Posted on

Bitcoin (BTC) Advocate Mike Novogratz Still High on Hopium, And That’s Ok

Galaxy Digital’s Novo Still Hyped For Bitcoin Rally

Since making a full-on foray into this space in 2016-2017, Mike Novogratz has quickly become a leading voice in this space. And while the bear market has deterred many investors, Novogratz, a Goldman Sachs partner turned founder of crypto-centric Galaxy Digital, has kept his head rather high. Case in point, as Bitcoin (BTC) fell each and every month, his comments have remained optimistic.

While he has received some flak for his seeming permabullishness, the investor only doubled-down on his buoyant sentiment in a recent tweet.

In response to a “bull” or “bear” Twitter poll from none other than Changpeng Zhao of Binance, Novogratz, who once claimed that upwards of 20% of his net worth was in Ethereum and Bitcoin, responded with neither. The cryptocurrency insider remarked that from his point of view, the market looks “pretty sideways,” but is finding a base for sure.

And with that, he added that more likely than not, BTC’s next move will be one to the upside, rather than a harrowing drop to lower lows as some cynics suggest.

Zhao responded with “good info,” presumably agreeing with the theory that Bitcoin is leaning bullish at current.

Why Some Are (Rightfully) Bullish On BTC

So why is Novo bullish? And more importantly, is his optimism warranted?

Well, as reported by Ethereum World News on previous dates, the Galaxy Digital head’s sentiment has much to do with instituional involvement in this budding space.

In another one of his crypto-related tweets, which are somewhat scant in current conditions, the former Wall Street hotshot explained that there’s tons of institutional “activity under the hood,” adding that investors should “stay the course.” While Novogratz seems to be implying that lots of underlying developments aren’t public knowledge, there is a handful of recent news pieces that show that institutional players are here.

Just last week, Fidelity Investments, a Boston-based, renowned financial services provider, revealed that it had soft-launched its Digital Asset Services division, which is currently offering Bitcoin custody and trade execution for a select list of clients. In an interview with The Block, Tom Jessop, the head of Digital Asset Services, claimed that 20% of 450 institutions it interviewed were interested in cryptocurrencies, like Bitcoin.

The fact that university endowments, like Michigan’s $12 billion fund, and pension plans, like two in Virginia State, U.S., have begun to delve into diverting funds into this market only accentuates that institutions see potential in this asset class.

While this doesn’t mean that cryptocurrencies must move higher, the fact that such heavyweights in the investment realm are throwing some money here should be a promising sign. And it seems like that is exactly what Novogratz is touching on.

Photo by Austin Chan on Unsplash

The post Bitcoin (BTC) Advocate Mike Novogratz Still High on Hopium, And That’s Ok appeared first on Ethereum World News.

Posted on

NYSE Operator’s Crypto Platform Bakkt Completes $182.5 Million Funding Round

The digital assets platform Bakkt — created by the NYSE’s operator — announces the completion of their first funding round.

Digital assets platform Bakkt — created by the operator of the New York Stock Exchange (NYSE) — has announced the completion of its first funding round in a blog post today, Dec. 31.

The institutional investor-focused cryptocurrency platform from the Intercontinental Exchange (ICE) has officially raised $182.5 million from 12 partners and investors, according to the post.

The partners and investors reportedly include major names in both traditional finance and crypto-oriented investing, including ICE, Boston Consulting Group, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Microsoft’s venture capital arm and Pantera Capital.

Bakkt also noted in the announcement that the company is working with United States regulators — namely the  Commodity Futures Trading Commission (CFTC) — to obtain “regulatory approval for physically delivered and warehoused bitcoin,” adding:

“We have filed our applications and the timing for approval is now based on the regulatory review process.”

Also today, ICE separately announced in a notice that the firm “expects to provide an updated launch timeline in early 2019, for the trading, clearing and warehousing of the Bakkt Bitcoin (USD) Daily Futures Contract.” In late November, the long-awaited digital assets platform stated that it was targeting Jan. 24, 2019 as a launch date, pending CFTC approval.

ICE first announced plans to create a Microsoft cloud-powered “open and regulated, global ecosystem for digital assets” in August, as Cointelegraph reported at the time.

Multiple experts and commentators in the crypto and blockchain industry have pointed to Bakkt’s coming launch as a major factor that will help crypto markets rebound from this year’s ongoing bear market.