Mike Novogratz is a renowned American businessman and investor, best known for his work in the financial sector. He founded the investment firm Fortress Investment Group in 1998, which he led until 2015. Since then, Novogratz has been an active investor in the cryptocurrency industry, and has invested in various blockchain-related projects. He is also an advisor for many cryptocurrency projects and companies, and is a major advocate of blockchain technology. Novogratz is currently the CEO and founder of Galaxy Digital, a financial services and investment management firm for the digital asset and blockchain technology industry. His passion for the crypto world has led him to become one of the most prominent figures in the industry.
AdvancedPersonalitiesTrading and investment
AdvancedPersonalitiesTrading and investment
- Michael (Mike) Novogratz is one of the most famous investors in crypto assets. Founder and CEO of Galaxy Digital.
- Novogratz was one of the first Wall Streeters to publicly recognize digital currencies as a promising and valuable asset class.
- In 2008, Forbes recognized Novogratz as a dollar billionaire.
How did Novogratz get into the crypto industry?
Michael Novogratz was born in 1964 in Alexandria, Virginia (USA), in a large family. Received a Bachelor of Arts degree in Economics. Served in the National Guard.
Novogratz made a career as a Wall Street financier. He worked in the offices of Goldman Sachs in Tokyo and Hong Kong, later became a partner and managed the offices in Latin America. In 2002, he moved to a large investment company, Fortress Investments, where, in particular, he took part in organizing its IPO. The company suffered heavy losses due to the 2007-2008 recession.
In 2015, Novogratz joined a relatively small cryptocurrency investment firm called Galaxy Investment Partners. At the same time, back in 2017, the financier noted that he keeps about 20% of his personal capital in bitcoin and ether.
When did Novogratz start Galaxy Digital?
In 2018, Novogratz founded his own company called Galaxy Digital. The initial volume of its investment fund was $500 million, of which $150 million was provided by Novogratz. The founder himself repeatedly called the company “Goldman Sachs for cryptocurrencies.” Shortly after the start of work, Galaxy Digital held a listing on the Canadian TSX Venture Exchange.
Today, Galaxy Digital on its official website calls itself an intermediary between the crypto industry and institutional investors and offers a wide range of financial services for “whales”, up to bitcoin mining.
In addition, the company itself is one of the main institutional investors operating in the cryptocurrency market. As of September 2021, her portfolio included over 150 digital asset projects.
During 2021, the company entered into strategic partnerships with Morgan Stanley and Invesco, and at the end of 2021 raised $500 million in financing through a bond offering.
In May 2022, the total amount of assets under management of Galaxy Digital was about $2 billion, half of which are crypto assets, and the rest is occupied by shares of companies related to the crypto industry.
What is Novogratz and his company investing in?
In one of the interviews, the venture investor admitted that in 2012 he first bought bitcoins at $95, and in 2013 he participated in the Ethereum token sale, buying coins at $0.99.
One of Galaxy Digital’s first major investments was the U.S. cryptocurrency-backed lending platform BlockFi in 2018. A few months later, she took part in the investment round of the mining company Bitfury Group.
In September 2020, Galaxy Digital became a shareholder of the ParaFi Capital fund, which invests in decentralized finance projects. Through this partnership, the company has invested about 5% of its capital in DeFi.
In May 2021, the company announced the acquisition of BitGo, the leading US crypto custodian, for over $1.2 billion. However, as of May 2022, the deal has not yet been completed.
It should also be noted a joint project with Bloomberg – the Bloomberg Galaxy Crypto Index (BGCI), which is used by corporate clients of the platform. It tracks the dynamics of the market capitalization of bitcoin and the largest altcoins.
In addition, Galaxy Digital has a separate division for investments in the gaming industry called Galaxy Interactive with a budget of several hundred million dollars.
What does Novogratz think about Bitcoin?
The founder of Galaxy Digital praises bitcoin, calling it the only reliable crypto asset, especially for beginners and residents of countries with a weak national currency. In general, according to the investor, BTC should take at least 2-3% in the portfolio of anyone who is interested in saving their funds.
At the same time, according to the investor’s opinion, which he expressed in the fall of 2021, 75% of modern altcoins will not survive in the next ten years.
Novogratz urges not to pay attention to the volatility of bitcoin, since in the long term the value of the first cryptocurrency will increase by an order of magnitude. At the same time, the venture investor noted that market fluctuations are decreasing as more and more “whales” come to it.
At the same time, an important factor in determining the price of bitcoin, according to Novogratz, will be the refusal of the US Federal Reserve to tighten monetary policy. As he stated in April 2022, after the Reserve System stops raising the key rate, the price of bitcoin will settle between $500,000 and $1 million.
However, the venture capitalist is convinced that bitcoin will end up being used to store capital rather than payments. Galaxy Digital analysts predict that both BTC and ETH will double in value by mid-2023.
Is it true that Novogratz invested in Terra?
Indeed, Galaxy Digital has invested heavily in Terra blockchain developer Terrafom Labs, participating in at least two investment rounds in 2021.
Mike Novogratz himself even got a tattoo dedicated to the project at the beginning of 2022, and classified himself as a “lunatic” (as members of the Terra community called themselves).
However, a few months later, the price of the project’s native coin, along with the UST algorithmic stablecoin, collapsed. In a letter to Galaxy Digital employees, Novogratz admitted that investing in Terraform Labs was a mistake. The tattoo, according to the financier, “will be a constant reminder that venture capital requires humility.”
What does Novogratz think about CBDC?
Since August 2020, the US authorities have been working on a project to create a digital dollar. Mike Novogratz is one of the proponents of a new type of state currency.
According to him, it is necessary to issue a digital dollar as soon as possible, and the relevance of the project is proved by China, which recently expanded the digital yuan testing program. The slowness of the United States in this matter is an “existential crisis” for Novogratz.
The investor also accused the US authorities of “misunderstanding of cryptocurrency” and opposed the tightening of regulation of digital assets.
“Cryptocurrencies are the future of our financial system and citizens deserve officials who do their homework to understand this new technology. We also need regulators and politicians who recognize that new ideas need room to grow,” he wrote.
What does Novogratz think about NFT?
In 2020, along with businessman and writer Gary Vaynerchuk and the head of online retailer Fanatics, Novogratz announced a sports NFT marketplace called Candy Digital.
The first digital item to go on sale on the platform was an NFT with a farewell speech from American baseball player Lou Gehrig. In October 2021, the startup was valued at $1.5 billion.
Novogratz sees the non-fungible token market as “the road to the future.” Soon everyone will use it, the head of Digital Galaxy is sure – it’s “just a matter of time.”
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Mike Novogratz is an accomplished entrepreneur, investor, and philanthropist. With his diverse background and experience, he has become a leader in the financial world and a role model for many. His commitment to his passions, his drive to succeed, and his gracious giving have made Mike Novogratz an inspirational figure in the industry and beyond.