Galaxy Digital has launched a $175 million venture fund, its first to include external capital, aimed at investing in early-stage crypto startups. The fund surpassed its initial target of $150 million and marks a significant shift for Galaxy, which previously invested solely from its balance sheet. General partner Mike Giampapa highlighted the fund's focus on startups innovating in areas like stablecoins and decentralized finance (DeFi), signaling a move from speculative uses of blockchain to more practical applications. The strategic decision to scale venture operations followed the instability of the market post-FTX collapse, presenting an optimal moment for expansion. The initial close of the fund occurred in July 2024, with $50 million already deployed to companies such as Monad and Ethena. Founded in 2018 by Mike Novogratz, Galaxy Digital has diversified its interests and now manages assets worth $7 billion. Despite the growth, the firm reported a loss of $295 million in Q1 2025 due to market fluctuations and operational restructuring in its mining sector.

Source đź”—