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Institutional investors join Galaxy’s new fund as it doubles down on practical blockchain applications.
Key Takeaways
- Galaxy Digital raised $175 million for its first externally-backed venture fund targeting early-stage crypto startups.
- The fund focuses on stablecoins, DeFi, and practical blockchain applications, reflecting a shift towards tangible crypto use cases.
Galaxy Digital, which recently debuted on Nasdaq, has secured $175 million for its first venture fund that includes external capital, according to a new report from Fortune.
The fresh capital, which surpasses Galaxy’s $150 million target, will be used to invest in early-stage crypto startups, particularly those focused on stablecoin infrastructure, DeFi applications, and practical blockchain use cases, said Mike Giampapa, general partner at Galaxy.
Galaxy has long backed crypto startups using its own balance sheet. With this new fund, it’s bringing in outside investors for the first time to expand its footprint in ventures bridging crypto and traditional finance.
Galaxy holds both general partner and limited partner roles in the fund. Other participants include institutional investors, family offices, and fund-of-funds tied to its asset management business.
The fund reached an initial close of $113 million in July 2024 and has already deployed $50 million into companies such as Monad and Ethena.
Mike Novogratz’s company is participating in the fund as both general partner and limited partner, with additional commitments from institutional LPs, including family offices and fund-of-funds connected to Galaxy’s asset management division.
Since its $113 million initial close in July 2024, approximately $50 million has been allocated to early-stage projects such as Monad and Ethena, as noted in the report.
Founded in 2018, Galaxy’s mission is to bridge traditional finance and the emerging crypto economy. Over the years, the company has expanded into asset management, proprietary trading, crypto mining, and ETFs.
In early 2024, Galaxy partnered with Invesco to launch a spot Bitcoin ETF, and it is now exploring a spot Solana ETF.
Despite past setbacks, including a huge loss from its exposure to the failed Luna stablecoin project and a $295 million net loss in Q1 2025 due to falling crypto prices and mining shutdowns, Galaxy remains one of the most influential US crypto firms.
As of May 2025, the company reported approximately $7 billion in assets under management.
The company commenced trading on Nasdaq under ticker GLXY in mid-May, with shares rising over 15% on its debut day.
Novogratz views US market expansion as a strategic priority. Beyond crypto, Galaxy is also investing in artificial intelligence, identifying both sectors as the most promising areas for long-term market growth.
The company is further exploring the tokenization of its own equity, engaging with the SEC to potentially enable integration of Galaxy stock into DeFi applications.
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English (US) · 