Galaxy Digital has successfully closed a $175 million venture fund, representing its first venture fund supported by external capital. This initiative reflects the company’s intensified efforts to invest in early-stage cryptocurrency startups.
The fund surpassed its initial $150 million target, constituting Galaxy’s inaugural fund accepting outside investment. A September 2024 Fortune report indicated the company historically financed venture investments solely from its internal balance sheet.
Galaxy Digital Managing Partner Mike Giampapa explained the fund’s focus: backing early-stage companies leveraging stablecoins, DeFi applications, and other blockchain use cases that extend beyond speculative ventures. “You’re seeing this fundamental shift from more speculative use cases of blockchains to something that’s much more… tangible,” he stated.
Galaxy Expands Venture Arm Post-FTX Collapse
Giampapa elaborated that while Galaxy desired to scale its venture operations beyond balance sheet investing long-term, the FTX collapse presented a strategic window of opportunity. “Quietly, we had this stablecoin revolution,” he noted. “While the industry was getting our feet underneath us again, it became obvious that we wanted to take our venture franchise to the next level.”
The fund structure positions Galaxy as both a general and limited partner. Giampapa confirmed institutional investors, including family offices and funds supporting Galaxy’s asset management clients, participated alongside Galaxy. While specific identities remain undisclosed, these represent core limited partners.
According to prior statements by Galaxy CEO Michael Saylor, the fund achieved a first close of $113 million in July 2024. Initial capital deployment of $50 million has already occurred, funding companies like Monad (a performance-focused blockchain) and Ethena (the issuer of a yield-bearing stablecoin).
Galaxy Becomes a Crypto Conglomerate
Founded by former Goldman Sachs partner Mike Novogratz in 2018, Galaxy has evolved into a major crypto conglomerate spanning asset management, Bitcoin ETFs, cryptocurrency mining, and venture investing.
Galaxy’s initial public offering (IPO) listed it on Nasdaq in May 2024, reporting $7 billion in assets under management that same period. However, amid falling crypto prices and restructuring within its mining segment, the company reported a first-quarter 2025 net loss of $295 million.
Galaxy Digital’s Managing Partner Mike Giampapa highlighted that August 8, 2024, the highest daily trading volume in Galaxy’s history occurred during the tumultuous post-US election day period after Donald Trump’s presidential election win on November 5, 2024. This day saw Novogratz’s net worth increase by approximately $600 million, or ~15%, reaching an estimated $4.6 billion.
