Novogratz Invests $15 M in Crypto Startup

Justine Pope
  • AlphaPoint Corp becomes Galaxy Digital latest partner
  • Billionaire Novogratz on a mission to develop cryptosphere
  • Galaxy Digital set to be institutional-quality merchant bank for digital currency

Ex-hedge funder manager, Mike Novogratz has invested $15m in AlphaPoint Corp, an exchange platform that supports blockchain technology and cryptocurrencies, in an effort to further develop the crypto-sphere. The announcement from Bloomberg on Thursday, confirms that Novogratz’s firm, Galaxy Digital will be part of this effort.

In a statement, Novogratz said:

“We are in the early stages of a fundamental transformation in financial markets due to the digitization of assets. We are excited to partner with AlphaPoint as we continue to help drive this revolutionary change in digital markets.”

Mike Novogratz

Novogratz, who is a billionaire and crypto enthusiast, wants to develop Galaxy Digital into what he reportedly calls an institutional-quality merchant banking business in digital currency and blockchain.

In May, Galaxy Digital partnered with Bloomberg to create the Bloomberg Galaxy Crypto Index (BGCI), a tool intended for corporate-level investment funds to track market performance. BGCI will track ten cryptocurrencies from the largest, most liquid portion of the cryptocurrency market.

This latest investment adds to Galaxy Digital’s growing list of partnerships and investments in the cryptocurrency space. According to Bloomberg, in January the investor rolled out a plan to raise $191m to list Galaxy shares and announced he is building the “Drexel of crypto.”

Founded in 2013, New York City-based AlphaPoint has also attracted investment from Blockchain Capital, according to its website. In April, the firm said it was partnering with the Royal Mint and CME Group Inc. to launch a platform for trading digital gold.

Greg Wasserman, managing director of Galaxy Digital Ventures, will join AlphaPoint’s board of directors.