Mike Novogratz's Galaxy Digital Plummets in Stock Market Debut

Francisco Memoria
  • Shares of Mike Novogratz' crypto bank, Galaxy Digital, plummeted on their first day trading in Toronto's TSX Venture Exchange.
  • According ot Yahoo data, these fell by nearly 30% before recovering on the opening bell.

Mike Novogratz’s cryptocurrency and blockchain-focused merchant bank Galaxiy Digital has plummeted on its first day trading on Toronto’s TSX Venture Exchange, after falling close to 30%.

According to Yahoo! Finance data Galaxy Digital’s shares, trading under the GLXY ticker, fell from their opening price of CA $2.75 to a low of CA $1.98 before recovering to CA $2.31, meaning they lost 28% of their value in one day.

Novogratz, a former Goldman Sachs macro trader, launched the company back in November, one month before bitcoin, the flagship cryptocurrency, hit its all-time high near $20,000. Since them, it plummeted to under $6,000, before recovering to $7,520.

As covered, the crypto merchant bank reported a loss of $134 million in the first quarter of this year, in its first-ever financial disclosure. The firm, based in Manhattan, reported a net loss of $103.3 million on trading, with $13.5 million being on cryptocurrencies and $86.5 million worth of unrealized losses.

According to CNBC, Canadian regulators stopped the firm from trading on the TSX Venture Exchange sooner as they blocked its listing for eight months. During that time, most cryptocurrencies saw their value plummet, affecting Galaxy Digital.

Seemingly being unaffected by the quarter’s results, Novogratz revealed he’s looking forward for the future, as he revealed he’s proud of the progress the firm made, adding that it “assembled a world-class team with deep institutional knowledge and expertise and have also made significant strides in scaling our four core business lines.”

Despite its performance, the billionaire investor noted he believes going public was still the right move while speaking in a BNN Bloomberg Television interview. He said:

If I knew what I know now, knew the crypto markets were going to swoon as much, and it was going to take so long, I might have stayed private for another year or so and then gone public. But I don't think it's a mistake.

Mike Novogratz

Per various reports, the former Goldman Sachs trader expects Galaxy Digital to one day be “globally traded” in Hong Kong, London, and Frankfurt.

A Well-Known Bitcoin Bull

Novogratz is notably a well-known bitcoin bull. He as in the past told CNBC that bitcoin could “easily” hit $40,000 by the end of this year, and guessed ethereum, the second-biggest cryptocurrency by market cap, could hit $1,500.

Giving a keynote speech at Blockchain Week Korea, the billionaire investor explained why he remains bullish on cryptocurrencies like bitcoin. Per his words, a “herd of institutional investors” is coming towards the crypto ecosystem. These are "slowly coming to the realization that blockchain will be internet or Web 3.0."

Microsoft's Bing Reportedly Blocked Over 5 Million Cryptocurrency Ads Last Year

Francisco Memoria

Microsoft’s search engine Bing has reportedly blocked over 5 million cryptocurrency-related ads last year, as a result of a ban the search engine enacted in an attempt to protect its users from fraudsters.

According to Bing’s ad quality review, the company’s bad account takedowns doubled in 2018, with cryptocurrency, weapons, and third-party tech support scams being the main problems it faced. Overall, Bing suspended “nearly 200,000 accounts” last year, and removed 900 million ads from its platform.

As covered, Bing banned cryptocurrency-related ads back in May, in a move it claimed was made to protect users from scammers, as the crypto market being unregulated meant cryptocurrencies “present a possible elevated risk to our users with the potential for bad actors to participate in predatory behaviors, or otherwise scam consumers.”

At the time Melissa Alsoszatai-Petheo, who published the company’s blog post on the move, wrote:

To help protect our users from this risk, we have made the decision to disallow advertising for cryptocurrency, cryptocurrency related products, and un-regulated binary options. Bing Ads will implement this change to our financial product and services policy globally in June, with enforcement rolling out in late June to early July.

The move saw cryptocurrencies join other questionable products and services Microsoft banned from its platform. These include Ponzi and pyramid schemes, and the mentioned third-party tech support scams.

Bing notably banned cryptocurrency-related ads following bans enacted by search giant Google and social media giant Facebook. These two firms have since started allowing crypto-related ads from a few companies.

At the time, various cryptocurrency associations threatened lawsuits against the tech giants over what they claimed to be “cartel collusion” against cryptos, made in an attempt to manipulate the market.

Although Microsoft’s search engine has banned crypto ads, the tech giant itself has been accepting bitcoin payments since 2014. Its website even has a how-to page walking users through the process of topping up their accounts using BTC.