Transactions expand Galaxy Digital’s market reach and strengthen the company’s trading solutions portfolio, relationships with global exchanges, and credit and derivatives expertise.
NEW YORK and CHICAGO, Nov 13, 2020 / CNW / – Galaxy Digital Holdings Ltd. (TSX: GLXY) (“Galaxy Digital” or the “Company”) today announced the acquisition of two leading cryptocurrency trading firms: DrawBridge Lending (“DrawBridge”), a digital asset lending, borrowing and structured product innovator, and Blue Fire Capital (“Blue Fire”), a proprietary trading company specializing in market making and bilateral liquidity for digital assets.
DrawBridge and Blue Fire are both pioneers in applying their teams’ institutional expertise in traditional lending, structured products, futures and market making to the rapidly growing cryptocurrency derivatives and credit markets.
“Galaxy Digital’s mission is to bring cryptocurrencies into traditional finance and vice versa. The market-leading capabilities of DrawBridge and Blue Fire will allow us to further build on our strong position as a go-to digital asset trading desk and ours innovative portfolio of commercial products and services, “said Christopher Ferraro, President of Galaxy Digital. “Additionally, these acquisitions bring two exceptional and experienced teams who will play a key role in leading and growing our business for the years to come.”
Galaxy Digital Trading (“GDT”) operates a global 24 hour trading model and offers institutional clients and counterparties a wide range of trading strategies. It is currently being over traded $ 4 billion of the OTC volume annually with almost 200 active counterparties worldwide. 2020 saw widespread institutional recognition of cryptocurrency use cases by investors, corporations, regulators and governments, and as a result, the GDT has seen a significant increase in institutional demand for cryptocurrency-related financial products and services.
Michael Novogratz, Founder and CEO of Galaxy Digital, said, “Institutional investors and corporations are becoming more familiar with digital assets and are becoming more and more familiar with the purpose and importance of cryptocurrency in their investment strategies. We look forward to the seamless integration of DrawBridge and Blue Fire into Galaxy Digital Trading and our world-class team to strategically leverage our technologies and solutions to further meet what we believe to be an even greater wave of institutional demand. “
“For the past two and a half years, the Galaxy Digital Trading team has worked on a product and technology roadmap that includes world class execution, high liquidity and a growing range of spot and derivative services including principal, agency and electronic trading,” said Peter Wisniewski, Co-Head of Galaxy Digital Trading. “These acquisitions are a continuation of this advance and a key milestone in further expanding our talent base and expanding our differentiated capabilities, which include fiat and digital asset lending, structured products and prime brokerage services.”
Main advantages of transactions:
- The combination expands Galaxy Digital Trading’s revenue generating activities by instantly diversifying GDT beyond the current annual OTC trading volume of. out $ 4 billion and in: advanced trading in derivatives and futures contracts; Market making on the stock exchange; and loans, bonds and structured products.
- Scales DrawBridge’s first mover credit and structured product offering in crypto via Galaxy Digital’s institutional relationships and a solid publicly audited balance sheet as DrawBridge’s $ 150 million third-party assets are added to Galaxy Digital.
- Builds on DrawBridge’s strategic partnership with GDT established in 2019. The companies then collectively rated dozens of bespoke loans and executed them on a growing live loan book that this transaction is expanding.
- Reinforces Blue Fire’s world-class trading strategies and execution with Galaxy Digital’s broad sources of liquidity and enhances the combined company’s excellent relationships with major global crypto exchanges via Blue Fire’s fictitious annual derivatives trading volume of more than $ 36 billion. Promotes the use and optimization of Galaxy Digital’s balance sheet to unlock strong risk-adjusted return opportunities, as well as providing customers and counterparties with world-class market access and efficient trading capitalization.
- Established strong regional hub in Chicago for Galaxy Digital to expand agency, prime brokerage and electronic trading services and increase connectivity with traditional derivative firms while looking to enter crypto markets with blue chip partners.
- Further reinforces the Galaxy Digital Trading executive team with seasoned trading and credit market participants who have a proven track record in traditional asset classes and the crypto markets.
- CEO and Co-Founder of DrawBridge, Jason Urban, will co-head Galaxy Digital Trading to Galaxy Digital and will co-head with others, Peter Wisniewski. Andrew Karos will join Galaxy Digital and remain CEO of Blue Fire, which will continue to operate as a wholly owned subsidiary.
- Offers short term capital investment opportunities for the youngest $ 50 million Financing by institutional investors.
About Galaxy Digital
Galaxy Digital is a diversified financial services and investment management company in the digital asset, cryptocurrency and blockchain technology space. The Galaxy Digital team has extensive experience in investing, portfolio management, capital markets, venture capital, wealth management and blockchain technology. Galaxy Digital currently operates four different businesses including: Trading, Asset Management, Principal Investments and Investment Banking. Is the CEO and founder of Galaxy Digital Michael Novogratz. The company is based in New York City, with offices in Chicago, San Francisco, London, Tokyo, Hong Kong, the Cayman Islands (Seat) and New Jersey. For more information on the company’s stores and products, please visit www.galaxydigital.io.
About DrawBridge Loans
DrawBridge Lending was founded in 2018 and is a Chicago-based, CFTC-regulated Commodity Trading Advisor (“CTA”) and Commodity Pool Operator (“CPO”) that issues structured loans with associated derivatives to provide institutional investors with cryptocurrency-hedged financial products.
About Blue Fire Capital
Blue Fire Capital based in Chicago, founded in 2007, is a proprietary trading company specializing in crypto providing bilateral liquidity for digital assets. Blue Fire has built deep relationships with major crypto exchanges worldwide and is a leading market maker in these trading venues.
Disclaimers of Liability
The TSX has neither approved nor disapproved of the information contained herein.
This press release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) as used herein United States Securities legislation including the US Private Securities Litigation Reform Act of 1995. All statements contained herein, other than statements of historical or current fact, are forward-looking statements. Forward-looking statements are often, but not always, identified by words such as “expects,” “expects,” “believes,” “intends,” “estimates,” “potentially,” “possible” and similar expressions or statements that events, conditions or Results “occur”, “may”, “could” or “should” or be achieved. Forward-looking statements in this press release relate, among other things, to the company’s ability to realize anticipated transactional benefits and to achieve its business goals. There can be no assurance that these statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions, and projections at the time the statements were made and are based on a number of assumptions and estimates that, although believed to be reasonable by the company, are inherently material business, economic, competitive, political and social Uncertainties and contingencies. The assumptions used in preparing these statements, although believed reasonable at the time of preparation, may prove to be inaccurate. Many known and unknown factors could cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements and the parties have made assumptions and estimates of on or related to many of these factors. These factors include, without limitation, the risks identified on the company’s annual information form dated April 8, 2020 and available from SEDAR at www.sedar.com. Readers are cautioned not to place undue reliance on the forward-looking statements and information in this press release. The company assumes no obligation to update any forward-looking statements about beliefs, opinions, projections or other factors should they change, unless required by law.
SOURCE Galaxy Digital Holdings Ltd.
For more information: please contact: Galaxy Digital, Christopher Ferraro, President, email: [email protected], Tel: 212.390.9216; Prosek (for media inquiries on behalf of Galaxy Digital), Mike Geller, Managing Director, email: [email protected], Tel: 212.279.3115; Extension 242