Galaxy Digital, under the stewardship of Mike Novogratz, has experienced a remarkable surge in assets under management, soaring from $1.7 billion to a substantial $5.3 billion within the span of a year, as reported by the Financial Times.
The surge in assets can be primarily attributed to Galaxy's recent selection by administrators overseeing FTX's bankruptcy estate. Galaxy Digital has been entrusted with the management of specific holdings from the failed crypto exchange. With this success, the company has set its sights on potentially acquiring assets from other bankrupt entities.
Steve Kurz, the global head of asset management at Galaxy Digital, highlighted the firm's interest in expanding its portfolio through the acquisition of assets from distressed companies. "We have a crypto venture team that has been investing off our balance sheet for five years," Kurz revealed in an interview with the Financial Times.
Among the prospective targets for acquisition could be FTX's venture capital portfolio, encompassing real estate and technology companies. This portfolio notably includes a stake in the AI startup Anthropic, presenting a lucrative opportunity for expansion and diversification.
Kurz emphasized Galaxy Digital's strong track record in managing assets and investments, asserting the company's suitability for taking on such acquisitions. "The record that we have on that side of our asset management business means we’d be a good candidate for something like that," he remarked.
As Galaxy Digital continues to grow its assets and explore strategic investment opportunities, its focus on leveraging its expertise in the crypto space positions the firm as a potential frontrunner in acquiring distressed assets from other troubled companies in the industry.